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Examples of such transactions are the sale of a franchise or licence for an unlimited period, the sale of goodwill in connection with a business, the outright sale of a process and the sale of certain rights. ... Subparagraph 14(5)(a)(iv) has a "mirror image test" to determine whether an amount which a taxpayer has received or may become entitled to receive in connection with a business as a result of a disposition of property, is proceeds from the disposition of EC property resulting in an EC amount. ... In other words, a taxpayer disposing of property in connection with a business looks in the mirror to see whether, if the taxpayer were instead purchasing the property, its cost would qualify as an EC expenditure of the taxpayer for the same business. ...

The CRA considers that incorporation expenses and similar expenses incurred in the setting up of a new corporation or in connection with an amalgamation of two or more corporations, as well as expenses incurred in connection with the reorganization of the affairs of a corporation (including the costs of supplementary letters patent), are "eligible capital expenditures" if they meet the requirements of that definition in subsection 14(5) as explained in ¶ 2. ... If damages were paid or incurred in connection with the acquisition of an eligible capital property, the cost of the damages would be added to the eligible capital expenditure pertaining to that property. ... Expenses incurred in connection with the issue of shares of the capital stock of a corporation are discussed in ¶ 18. ...

The CRA considers that incorporation expenses and similar expenses incurred in the setting up of a new corporation or in connection with an amalgamation of two or more corporations, as well as expenses incurred in connection with the reorganization of the affairs of a corporation (including the costs of supplementary letters patent), are "eligible capital expenditures" if they meet the requirements of that definition in subsection 14(5) as explained in ¶ 2. ... If damages were paid or incurred in connection with the acquisition of an eligible capital property, the cost of the damages would be added to the eligible capital expenditure pertaining to that property. ... Expenses incurred in connection with the issue of shares of the capital stock of a corporation are discussed in ¶ 18. ...

In this latter case, architectural, engineering and other expenses relating to the proposed creation or acquisition of a specific capital asset are eligible capital expenditures (as defined in paragraph 14(5)(b)) for which an allowance is permitted by virtue of paragraph 20(1)(b) of the Act, provided that the expenses are incurred in connection with a business carried on by the taxpayer. ... Whether the asset is acquired or not, there may be some expenditures in connection therewith that are specifically deductible under the provisions of the Act. ...

In this latter case, architectural, engineering and other expenses relating to the proposed creation or acquisition of a specific capital asset are eligible capital expenditures (as defined in paragraph 14(5)(b)) for which an allowance is permitted by virtue of paragraph 20(1)(b) of the Act, provided that the expenses are incurred in connection with a business carried on by the taxpayer. ... Whether the asset is acquired or not, there may be some expenditures in connection therewith that are specifically deductible under the provisions of the Act. ...

Summary This bulletin explains the deduction provided under subsection 20(10) in computing income of a taxpayer carrying on a business or practising a profession, in respect of expenses incurred by the taxpayer in attending up to two conventions a year in connection with the business or profession. ... Subsection 20(10) permits a self-employed taxpayer who is carrying on a business or practising a profession to deduct, in computing income for a taxation year from a business, expenses incurred in attending not more than two conventions a year provided that the conventions were (a) held by a business or professional organization, (b) attended in connection with the taxpayer's business or professional practice, and (c) held at a location that may reasonably be regarded as consistent with the territorial scope of the organization. ... A corporation generally will be subject to the usual limitation of two conventions per year in connection with its business but may send more than one representative to each. 10. ...

Summary This bulletin explains the deduction provided under subsection 20(10) in computing income of a taxpayer carrying on a business or practising a profession, in respect of expenses incurred by the taxpayer in attending up to two conventions a year in connection with the business or profession. ... Subsection 20(10) permits a self-employed taxpayer who is carrying on a business or practising a profession to deduct, in computing income for a taxation year from a business, expenses incurred in attending not more than two conventions a year provided that the conventions were (a) held by a business or professional organization, (b) attended in connection with the taxpayer's business or professional practice, and (c) held at a location that may reasonably be regarded as consistent with the territorial scope of the organization. ... A corporation generally will be subject to the usual limitation of two conventions per year in connection with its business but may send more than one representative to each. 10. ...

Summary This bulletin explains the deduction provided under subsection 20(10) in computing income of a taxpayer carrying on a business or practising a profession, in respect of expenses incurred by the taxpayer in attending up to two conventions a year in connection with the business or profession. ... Subsection 20(10) permits a self-employed taxpayer who is carrying on a business or practising a profession to deduct, in computing income for a taxation year from a business, expenses incurred in attending not more than two conventions a year provided that the conventions were (a) held by a business or professional organization, (b) attended in connection with the taxpayer's business or professional practice, and (c) held at a location that may reasonably be regarded as consistent with the territorial scope of the organization. ... A corporation generally will be subject to the usual limitation of two conventions per year in connection with its business but may send more than one representative to each. 10. ...

If damages are incurred in connection with the acquisition of an asset for which capital cost allowance may be claimed, the cost of the damages is included in the capital cost of that asset (or the CCA class to which the asset belongs). ... If damages are incurred in connection with the acquisition or production of inventory, the cost of the damages is included in the cost of inventory. If damages are incurred in connection with the disposition of a capital property, the cost of the damages is taken into account under subsection 40(1) for the purposes of calculating any gain or loss on that disposition. ...

If damages are incurred in connection with the acquisition of an asset for which capital cost allowance may be claimed, the cost of the damages is included in the capital cost of that asset (or the CCA class to which the asset belongs). ... If damages are incurred in connection with the acquisition or production of inventory, the cost of the damages is included in the cost of inventory. If damages are incurred in connection with the disposition of a capital property, the cost of the damages is taken into account under subsection 40(1) for the purposes of calculating any gain or loss on that disposition. ...