Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Revenue Canada Taxation Head Office
E. Mikhail (613) 957-2097
XXXX
Attention: XXXX
0CT 23 1986
Dear Sirs:
This is in reply to your letter of July 2, 1986, in which you requested our views on the calculation of capital cost allowance on depreciable property used in Canada to earn business income by a corporation resident in the United States.
It is our view that the capital cost of depreciable property is its fair market at the time the non-resident corporation begins to use the property to earn business income in Canada. Similarly the deemed proceeds of disposition when this depreciable property leaves Canada is its fair market value. The cost of acquisition and the deemed proceeds of disposition are determined under subsections 13(7) and (9) of the Income Tax Act subject of course to the provisions of the Canada-U.S. Income Tax Convention. The non-resident can revise his capital cost allowance claim within the guidelines permitted in Information Circular 84-1.
Yours truly,
for Director Small Business and General Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1986
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© Sa Majesté la Reine du Chef du Canada, 1986
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