(1)-(16)

Table of Contents

Subsection 13(1) - Recaptured depreciation

Administrative Policy

S3-F4-C1 - General Discussion of Capital Cost Allowance

Pro-rating of capital cost on part disposition

In para. 1.73, CRA indicated that where the is a partial disposition of a depreciable property of a...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense 556
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A 791
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Depreciable Property 324
Tax Topics - Income Tax Act - Section 16.1 - Subsection 16.1(1) 275
Tax Topics - Income Tax Act - Section 13 - Subsection 13(28) 254
Tax Topics - Income Tax Act - Section 13 - Subsection 13(27) 222
Tax Topics - Income Tax Act - Section 13 - Subsection 13(29) 155
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(2) 212
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(2.2) 351
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(3) 70
Tax Topics - Income Tax Act - Section 18 - Subsection 18(3.1) 166
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7.5) 207
Tax Topics - Income Tax Act - Section 261 - Subsection 261(2) 65
Tax Topics - Income Tax Act - Section 128.1 - Subsection 128.1(1) - Paragraph 128.1(1)(b) 230
Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(c) 170
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(e) 65
Tax Topics - Income Tax Act - Section 43 - Subsection 43(1) 152
Tax Topics - Income Tax Act - Section 68 197
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21.1) - Paragraph 13(21.1)(a) 75
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21.1) - Paragraph 13(21.1)(b) 212
Tax Topics - Income Tax Act - Section 8 - Subsection 8(2) 75
Tax Topics - Income Tax Act - Section 20 - Subsection 20(16.1) 152
Tax Topics - Income Tax Act - Section 13 - Subsection 13(9) 229
Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) 321
Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 237
Tax Topics - Income Tax Act - Section 13 - Subsection 13(5) 317
Tax Topics - Income Tax Act - Section 13 - Subsection 13(6) 221

29 July 2015 Internal T.I. 2015-0575921I7 - Recapture arising in statute-barred years

A taxpayer added the cost of property acquired to a particular Schedule II class, and then claimed CCA on the property for numerous years...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - E negative UCC balance arising in statute-barred year becomes recapture in 1st open year 251
Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) negative UCC balance arising in statute-barred year becomes recapture in 1st open year 155

5 October 2012 Roundtable, 2012-0453201C6 F - Règles d'attribution- séparation & décès

Before finding that there was no attribution of recapture of depreciation by virtue of the exception from the application of s. 74.1(1) contained...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 74.5 - Subsection 74.5(3) s. 74.5(3) busting of attribution occurs even if they were living separate and apart for under 90 days before the death of the transferee common-law spouse 256

15 December 2011 Internal T.I. 2011-0413891I7 F - Récupération d'amortissement-Recapture CCA

A holding corporation earned deemed active business income under s. 129(6) from renting a building to an associated corporation for two years, and...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 129 - Subsection 129(4) - Income or Loss reasonable to pro-rate recapture of depreciation between active business income and property income based on relative periods of use 230

21 December 2006 External T.I. 2006-0170851E5 F - Option d'achat de biens immeubles

CRA indicated that recapture of depreciation realized on the sale of a farm should be reported as farming income.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 49 - Subsection 49(1) capital gain when amount received for extending an option 52
Tax Topics - Income Tax Act - Section 49 - Subsection 49(4) refiling when option exercise in subsequent year 83

6 June 2002 External T.I. 2002-0133895 F - entreprise de placement determinee

Realtyco, which carried on an active business of operating a rental residential real estate portfolio which was not a specified investment...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 125 - Subsection 125(7) - Specified Investment Business recapture from sale of a rental business qualified as business income that was not from a specified investment business, notwithstanding no employees in that year after the sale 201

Subsection 13(4) - Exchanges of property

Cases

Posno v. The Queen, 89 DTC 5423, [1989] 2 CTC 234 (FCTD)

An airplane was found to be a replacement property for a previous airplane of the plaintiff, notwithstanding "no evidence that the plaintiff ever...

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The Queen v. G.T.E. Sylvania Canada Ltd., 74 DTC 6673, [1974] CTC 751 (FCA)

A reduction in the taxpayer's Quebec income tax that was effected by an amendment to the provincial legislation did not result in the taxpayer...

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Words and Phrases
received

See Also

Gestions Calce Ltée v. Agence du revenu du Québec, 2019 QCCQ 7377

One of the exceptions from the rule that a rental property cannot qualify as a “former business property” for purposes of the replacement...

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Words and Phrases
principally
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Former Business Property property was used more than 50% in active business of related lessee given actual use (in excess of written lease terms) 337

Administrative Policy

4 November 2016 External T.I. 2016-0666901E5 - New Class 14.1 and replacement property rules

Is it correct that, following the repeal of the eligible capital property rules effective January 1, 2017, no replacement property provisions will...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Former Business Property farm quota or other former ECP excluded 46

17 February 2005 External T.I. 2004-0090411E5 F - Bien de remplacement-dispos. involontaire

Regarding the situation where a corporation’s building and equipment were destroyed by fire and it used the insurance proceeds to invest in a...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 44 - Subsection 44(5) - Paragraph 44(5)(a.1) replacement property potentially can be held through a partnership if the partnership property is physically similar 220

84 C.R. - Q.85

The amendment, effective February 2, 1978, which specifically reduced the capital cost by investment tax credits, was enacted only for greater...

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80 C.R. - Q.44

Where a grant in respect of depreciable property to be acquired over a number of years is greater than the first costs incurred, the excess grant...

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Subsection 13(4.1) - Replacement for a former property

Administrative Policy

3 December 2019 CTF Roundtable Q. 14, 2019-0824481C6 - Replacement Property Rules

In order to expand its operations, a manufacturer acquires vacant land, takes three years to build a new plant, moves its operations there and,...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 44 - Subsection 44(5) a replacement property can be acquired before disposing of the former property 133

1996 Tax Executives Institute Round Table, Q. XIV (No. 5 - 963910)

Where a taxpayer had already decided to expand its packaging operation by acquiring a second packaging machine when the existing machine was...

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1 February 1990 T.I. (July 1990 Access Letter, ¶1321)

Where a taxpayer in the business of operating rest homes sold the rest homes and bought a hotel, the operation of the hotel generally would not be...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 44 - Subsection 44(5) 35

Paragraph 13(4.1)(b)

Subsection 13(4.3)

Subsection 13(5) - Reclassification of property

Administrative Policy

S3-F4-C1 - General Discussion of Capital Cost Allowance

Reasons for transfer

1.123 Subsection 13(5) contains the rules for computing the UCC of property of a prescribed class that has been transferred...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense 556
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A 791
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Depreciable Property 324
Tax Topics - Income Tax Act - Section 16.1 - Subsection 16.1(1) 275
Tax Topics - Income Tax Act - Section 13 - Subsection 13(28) 254
Tax Topics - Income Tax Act - Section 13 - Subsection 13(27) 222
Tax Topics - Income Tax Act - Section 13 - Subsection 13(29) 155
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(2) 212
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(2.2) 351
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(3) 70
Tax Topics - Income Tax Act - Section 18 - Subsection 18(3.1) 166
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7.5) 207
Tax Topics - Income Tax Act - Section 261 - Subsection 261(2) 65
Tax Topics - Income Tax Act - Section 128.1 - Subsection 128.1(1) - Paragraph 128.1(1)(b) 230
Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(c) 170
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(e) 65
Tax Topics - Income Tax Act - Section 43 - Subsection 43(1) 152
Tax Topics - Income Tax Act - Section 68 197
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21.1) - Paragraph 13(21.1)(a) 75
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21.1) - Paragraph 13(21.1)(b) 212
Tax Topics - Income Tax Act - Section 13 - Subsection 13(1) 431
Tax Topics - Income Tax Act - Section 8 - Subsection 8(2) 75
Tax Topics - Income Tax Act - Section 20 - Subsection 20(16.1) 152
Tax Topics - Income Tax Act - Section 13 - Subsection 13(9) 229
Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) 321
Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 237
Tax Topics - Income Tax Act - Section 13 - Subsection 13(6) 221

19 March 2003 External T.I. 2002-0151015 F - ALLOCATION DU COUT EN CAPITAL

A corporation that had operated a short-term car rental business will now lease the cars on a long-term basis to a partnership that will handle...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 16 - Paragraph 16(e) the short-term use requirement in 16(e) must continue to be met following the acquisition 218

30 June 2000 External T.I. 1999-0013945 - Rental property

Where a taxpayer owns buildings that are used in an active business, subsequently leases one of those buildings and it has a cost greater than...

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10 April 1997 External T.I. 9704225 - RENTAL PROPERTY

On the facts in 15 August 1990 T.I. 900372, would Reg. 1102(14)(d) apply to Company B so that upon the commencement of the rental of the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Regulations - Regulation 1101 - Subsection 1101(1ac) non-arm's length transfer followed by rental 112

7 June 1993 External T.I. 9308775 - Bien locatif

Corporation ABC use various buildings in the same business and which are part of the same CCA class. A building which no longer is needed in the...

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15 August 1990 T.I. 900372

Company A uses several buildings in an operating business, then later incorporates a subsidiary, transfers its real estate to the subsidiary on a...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Regulations - Regulation 1101 - Subsection 1101(1ac) 13(5) applies to move to separate class upon becoming a ental property 117

Paragraph 13(5)(a)

Administrative Policy

19 January 2004 Internal T.I. 2003-0045911I7 F - Camionnette et définition de automobile

An extended-cab pick-up truck was included in Class 10.1 when it was acquired in 2002 but fell into Class 10 for years commencing after 2002...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Automobile application of s. 13(5) where extended-cab pick-up truck ceased to be an automobile 90
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(g) s. 13(7)(g) limitation was preserved when pick-up truck transferred from Class 10.1 to 10 69

Subsection 13(5.1) - Rules applicable

Administrative Policy

S4-F7-C1 - Amalgamations of Canadian Corporations

1.35 Where one predecessor corporation has a leasehold interest in a property owned by a second predecessor corporation, the application of...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 100 - Subsection 100(2.1) s. 100(2.1) applies to non-qualifying amalgamation 64
Tax Topics - Income Tax Act - Section 111 - Subsection 111(12) application following amalgamation 113
Tax Topics - Income Tax Act - Section 116 - Subsection 116(1) deemed tcp following amalgamation 167
Tax Topics - Income Tax Act - Section 165 - Subsection 165(1) Amalco can continue objection and receive refunds 157
Tax Topics - Income Tax Act - Section 169 Amalco can continue objection 103
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(n) reserve after amalgamation 62
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Shareholder shareholder need not hold shares 88
Tax Topics - Income Tax Act - Section 251 - Subsection 251(3.1) deemed non-arm's length relationship on amalgamation 172
Tax Topics - Income Tax Act - Section 256 - Subsection 256(7) - Paragraph 256(7)(b) related party, majority and 50% group exceptions 495
Tax Topics - Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(iii) reserve after amalgamation 62
Tax Topics - Income Tax Act - Section 66.7 - Subsection 66.7(7) successoring where non-wholly owned amalgamation 109
Tax Topics - Income Tax Act - Section 69 - Subsection 69(13) no disposition of predecessor property on general principles 113
Tax Topics - Income Tax Act - Section 7 - Subsection 7(1.4) s. 87(5) not applicable 112
Tax Topics - Income Tax Act - Section 80.01 - Subsection 80.01(3) non-87 amalgamation/no FX gain 165
Tax Topics - Income Tax Act - Section 84 - Subsection 84(3) no deemed dividend to dissenter on amalgamation 87
Tax Topics - Income Tax Act - Section 85 - Subsection 85(1) election filing by Amalco 109
Tax Topics - Income Tax Act - Section 87 - Subsection 87(1.1) s. 87(1.1) qualifies for all s. 87 purposes 66
Tax Topics - Income Tax Act - Section 87 - Subsection 87(1.2) successoring where non-wholly owned amalgamation 109
Tax Topics - Income Tax Act - Section 87 - Subsection 87(10) deemed listing of temporary Amalco shares 120
Tax Topics - Income Tax Act - Section 87 - Subsection 87(11) gain if high PUC is sub shares 55
Tax Topics - Income Tax Act - Section 87 - Subsection 87(1) presumptive satisfaction of s. 87(1)(a)/dissent and squeeze-outs onside 297
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(a) new corp/deemed year end coinciding or not with acquisition of control 758
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(b) Amalco must follow predecessor's valuation method subject to truer picture doctrine 64
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(c) reserve after amalgamation 113
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(d) cost amount carryover 149
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(e.1) s. 100(2.1) applies to non-qualifying amalgamation 64
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(o) no continuity rule for non-security options 139
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(q) pre-amalgamation services 106
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2.11) loss-carry back to parent 169
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2.1) dovetailing with s. 88(1.1) 44
Tax Topics - Income Tax Act - Section 87 - Subsection 87(3.1) 346
Tax Topics - Income Tax Act - Section 87 - Subsection 87(3) PUC shifts 189
Tax Topics - Income Tax Act - Section 87 - Subsection 87(4) fractional share cash/ACB or value shift/implied non-recognition for predecessor shares 281
Tax Topics - Income Tax Act - Section 87 - Subsection 87(7) dovetailing with s. 78 and 112(12) 191
Tax Topics - Income Tax Act - Section 87 - Subsection 87(9) allocation of s. 87(9)(c)(ii) excess as parent chooses 230
Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d) late designation 122
Tax Topics - Income Tax Act - Section 88 - Subsection 88(1.1) dovetailing with s. 87(2.1) 62
Tax Topics - Income Tax Act - Section 98 - Subsection 98(5) partnership dissolution on amalgamation 137
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(2.2) deemed non-arm's length relationship on amalgamation 467
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(2) deemed non-arm's length relationship on amalgamation 371
Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(14) class continuity on non-arm's length amalgamation 327
Tax Topics - Income Tax Regulations - Regulation 8503 - Subsection 8503(3) - Paragraph 8503(3)(b) pre-amalgamation services 106
Tax Topics - Income Tax Act - Section 249 - Subsection 249(3) 136
Tax Topics - Income Tax Act - Section 22 - Subsection 22(1) 179

3 May 2000 T.I. 993323

"Subsection 13(5.1) of the Act does not require that the leasehold interest must have been included in Class 13 of Schedule II of the Regulations...

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29 January 1997 External T.I. 9640135 - SUBSECTION 13(5.1) OF THE ACT

Where the taxpayer had a leasehold interest in land and acquired the land, s. 13(5.1)(b) would deem the property to be depreciable property of a...

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30 August 1989 T.I. AC 58003

The capital cost of a property to a taxpayer for purposes of s. 13(5.1)(b) is the capital cost after taking into account subsection 13(5.2)....

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Subsection 13(5.2) - Deemed cost and depreciation

Administrative Policy

17 February 2021 External T.I. 2018-0768051E5 F - Contrat de crédit-bail

Regarding a lease to “Aco” of a truck tractor (the “Vehicle”) with a term of 48 months and a bargain purchase option at maturity, CRA...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(ii) leasing contract cannot be recharacterized as a secured loan funding an acquisition of depreciable property 246
Tax Topics - Income Tax Act - Section 68 lease payments for vehicle lease with bargain purchase option are allocated between ACB of option and deductible lease payments 301
Tax Topics - Income Tax Act - Section 49 - Subsection 49(3) a portion of the lease payments under a lease with a bargain purchase option recharacterized as consideration for the option 146
Tax Topics - Income Tax Act - Section 16.1 - Subsection 16.1(1) truck tractor is prescribed property 26
Tax Topics - General Concepts - Substance lease payments, but not the lease itself, could be recharacterized 93

2 April 2013 External T.I. 2012-0470591E5 F - Sale of automobile acquired after being leased

Where the lessee of an automobile acquired the automobile for continued use in its business, would it be included in Class 10.1 (by reason of the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(5.2) - Paragraph 13(5.2)(b) the deemed s. 13(5.2)(b) cost addition is recognized for s. 13(2) purposes 90

IT-233R "Lease-Option Agreements; Sale-Leaseback Agreements"

General discussion.

Paragraph 13(5.2)(b)

Administrative Policy

2 April 2013 External T.I. 2012-0470591E5 F - Sale of automobile acquired after being leased

Where the lessee of an automobile acquired the automobile for continued use in its business, would it be included in Class 10.1 (by reason of the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(5.2) s. 13(5.2)(b) addition must be taken into account for s. 13(2) purposes, including re no recapture 172

Subsection 13(5.4) - Idem [Deemed recapture]

Articles

Atlas, "Income Tax Issues in Real Estate Leasing", 1989 Corporate Management Tax Conference, p. 3:18

S.13(5.4) will only rarely apply.

Subsection 13(6) - Misclassified property

Administrative Policy

S3-F4-C1 - General Discussion of Capital Cost Allowance

Reassessment or deemed transfer

1.130 It sometimes happens that a taxpayer claims and is allowed CCA as a result of the property being placed in...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense 556
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A 791
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Depreciable Property 324
Tax Topics - Income Tax Act - Section 16.1 - Subsection 16.1(1) 275
Tax Topics - Income Tax Act - Section 13 - Subsection 13(28) 254
Tax Topics - Income Tax Act - Section 13 - Subsection 13(27) 222
Tax Topics - Income Tax Act - Section 13 - Subsection 13(29) 155
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(2) 212
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(2.2) 351
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(3) 70
Tax Topics - Income Tax Act - Section 18 - Subsection 18(3.1) 166
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7.5) 207
Tax Topics - Income Tax Act - Section 261 - Subsection 261(2) 65
Tax Topics - Income Tax Act - Section 128.1 - Subsection 128.1(1) - Paragraph 128.1(1)(b) 230
Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(c) 170
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(e) 65
Tax Topics - Income Tax Act - Section 43 - Subsection 43(1) 152
Tax Topics - Income Tax Act - Section 68 197
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21.1) - Paragraph 13(21.1)(a) 75
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21.1) - Paragraph 13(21.1)(b) 212
Tax Topics - Income Tax Act - Section 13 - Subsection 13(1) 431
Tax Topics - Income Tax Act - Section 8 - Subsection 8(2) 75
Tax Topics - Income Tax Act - Section 20 - Subsection 20(16.1) 152
Tax Topics - Income Tax Act - Section 13 - Subsection 13(9) 229
Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) 321
Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 237
Tax Topics - Income Tax Act - Section 13 - Subsection 13(5) 317

IT-190R2 "Capital Cost Allowance - Transferred and Misclassified Property".

21 November 1991 T.I. (Tax Window, No. 13, p. 5, ¶1604)

Where a taxpayer has a property which would have been in Class 34 but for the revocation of a certificate from the Ministry of Energy, Mines and...

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Subsection 13(7) - Rules applicable

Paragraph 13(7)(a)

Cases

C.A.E. Inc. v. Canada, 2013 DTC 5084 [at 5944], 2013 FCA 92

The taxpayer, which leased flight simulators which it had manufactured, subsequently sold those simulators. The Minister denied capital cost...

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Administrative Policy

22 June 2015 Internal T.I. 2014-0553731I7 - Deduction of Terminal Loss - Wind-up

On the winding-up of Subco into Parentco (which had held only investments) under s. 88(1), Parentco received the "Property," which had been...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) deemed depreciable property in fact not used for income-producing purpose 199
Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(14) depreciable property of sub deemed to be depreciable property when acquired by parent 444

26 November 2013 Annual CTF Roundtable, 2013-0493811C6 - Change in use

Respecting the statements in C.A.E. that the change of use rules apply to the conversion of inventory to depreciable property or vice versa, CRA...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(a) CAE not followed 135

28 May 2004 Internal T.I. 2004-0065101I7 F - Tenures à bail - Catégorie 13 et loyers

The taxpayer carried on its business in rented premises to which it made leasehold improvements, and then relocated to leased premises (to which...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Start-Up and Liquidation Costs rent on premises continued to be deductible after they were vacated 136
Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(c) vacated leased premises continued to qualify as Class 13 property 136
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Disposition of Property no disposition when premises were vacated (but not abandoned) 254

6 February 2002 External T.I. 2001-0100565 F - CHANGEMENT D'USUAGE ET PERTE FINALE

An individual ceased to carry on his personal business and decided to keep the computer and furniture previously used in his business. CCRA...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(a) change to personal use of assets on business termination engages ss. 45(1)(a) and 13(7)(a), but not if all use ceases 62

IT102R2 "Conversion of property, other than real property, from or to inventory" 22 July 1985

8. Where capital property is converted to inventory, the action of conversion does not constitute a disposition within the meaning of paragraphs...

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IT-218R "Profit, Capital Gains and Losses from the Sale of Real Estate, including Farmland and Inherited Land and Conversion of Real Estate from Capital Property to Inventory and Vice Versa".

10....where real estate is converted from capital property to inventory...for real estate that is used for the purpose of gaining or producing...

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Paragraph 13(7)(b)

Administrative Policy

10 June 2019 Internal T.I. 2019-0796221I7 F - Qualification d’un véhicule à titre de « voiture de tourisme »

A "passenger vehicle” initially acquired for personal use and subsequently converted to taxi use will at that time be considered by virtue of s....

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Automobile a passenger vehicle ceases to qualify as such when it commences to be used as a taxi given the s. 13(7)(b) deemed acquisition 102

26 January 2007 External T.I. 2005-0157751E5 F - Don d'un duplex et changement d'usage

Mrs. X, who owned a duplex, 2/3 of which was her principal residence and 1/3 of which was rented to a third party, made a gift of the duplex to...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(b) generally appropriate to allocate the deemed proceeds between residence and rental portion on building square footage basis, with land to follow suit 110

29 June 1995 Internal T.I. 9511027 - CHANGE IN USE

S.13(7)(a) or (b) does not apply where a motor vehicle acquired for the purpose of producing income from employment, begins to be used for the...

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Paragraph 13(7)(c)

Administrative Policy

3 March 2015 Internal T.I. 2014-0527841I7 F - Avantage imposable pour aéronef

In a situation where there was personal use of a corporate aircraft by the individual shareholder (Mr. A) of the "grandfather" (indirect parent)...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) benefits from personal use of corporate aircraft based on the cost of similar benefit from arm's length supplier 174
Tax Topics - Income Tax Act - Section 15 - Subsection 15(1.4) - Paragraph 15(1.4)(c) s. 15(1.4)(c) applied to extend scope of Massicotte indirect benefit doctrine 170
Tax Topics - Income Tax Act - Section 246 - Subsection 246(1) s. 15(1.4)(c) applied to extend scope of Massicotte indirect benefit doctrine 857

September 1991 Memorandum (Tax Window, No. 9, p. 22, ¶1456)

Where there is personal use by a partner of capital property of the partnership, the partnership's entitlement to CCA in respect of the property,...

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Paragraph 13(7)(e)

See Also

Agence du revenu du Québec v. 7958501 Canada Inc., 2022 QCCA 314

A private company (“SherWeb”), which provided, to paying customers, the use of software developed by it, transferred its software for...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Depreciable Property software for which no CCA claims had been made because its development costs were deducted as SR&ED, was not depreciable property 465
Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(d) software written off as SR&ED was not depreciable property 240

7958501 Canada Inc. v. Agence du revenu du Québec, 2020 QCCQ 2424, aff'd 2022 QCCA 315

The taxpayer (“501”) was formed to acquire the intellectual property (computer programs, trademark and knowhow) of a related corporation...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(d) s. 37 claims in developing software precluded it from being depreciable property 179
Tax Topics - Income Tax Act - Section 14 - Subsection 14(5) - Cumulative Eligible Capital - Variable E software created through currently deductible salary expense was disposed of as eligible capital property rather than depreciable property 296

Administrative Policy

19 January 2017 External T.I. 2015-0576751E5 F - Trust, Disposition of depreciable property, Assumption

Application of s. 13(7)(e) to deemed disposition

Does s. 13(7)(e) apply on a deemed disposition under s. 104(5)? CRA responded:

The Act does not...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - 101-110 - Section 107 - Subsection 107(2) s. 107(2) generally available where beneficiary assumes trust debt 168
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Personal Trust non-commital as to whether assumption of debt could constitute tainting consideration 183
Tax Topics - Income Tax Act - 101-110 - Section 107 - Subsection 107(2.1) s. 13(7)(e) applicable to depreciable property distribution 123
Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) trust cannot have a NAL relationship with itself 41

S3-F4-C1 - General Discussion of Capital Cost Allowance

Overview

1.60 … [T]here are special rules in paragraph 13(7)(e) applicable to depreciable property acquired from a person or partnership with...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense 556
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A 791
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Depreciable Property 324
Tax Topics - Income Tax Act - Section 16.1 - Subsection 16.1(1) 275
Tax Topics - Income Tax Act - Section 13 - Subsection 13(28) 254
Tax Topics - Income Tax Act - Section 13 - Subsection 13(27) 222
Tax Topics - Income Tax Act - Section 13 - Subsection 13(29) 155
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(2) 212
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(2.2) 351
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(3) 70
Tax Topics - Income Tax Act - Section 18 - Subsection 18(3.1) 166
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7.5) 207
Tax Topics - Income Tax Act - Section 261 - Subsection 261(2) 65
Tax Topics - Income Tax Act - Section 128.1 - Subsection 128.1(1) - Paragraph 128.1(1)(b) 230
Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(c) 170
Tax Topics - Income Tax Act - Section 43 - Subsection 43(1) 152
Tax Topics - Income Tax Act - Section 68 197
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21.1) - Paragraph 13(21.1)(a) 75
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21.1) - Paragraph 13(21.1)(b) 212
Tax Topics - Income Tax Act - Section 13 - Subsection 13(1) 431
Tax Topics - Income Tax Act - Section 8 - Subsection 8(2) 75
Tax Topics - Income Tax Act - Section 20 - Subsection 20(16.1) 152
Tax Topics - Income Tax Act - Section 13 - Subsection 13(9) 229
Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) 321
Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 237
Tax Topics - Income Tax Act - Section 13 - Subsection 13(5) 317
Tax Topics - Income Tax Act - Section 13 - Subsection 13(6) 221

8 November 2006 External T.I. 2006-0176171E5 F - Revente d'un bien amortissable - alinéa 13(7)e)

Corporation A sold a building having a cost of $3,800,000 to an associated corporation (Corporation B) for its FMV of $4,200,000, so that s....

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(b) - Subparagraph 39(1)(b)(i) capital loss denied on sale of building – proceeds reflected in UCC reduction 108
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - F application of disposition expenses under Element F 141

20 November 2012 External T.I. 2012-0463191E5 F - Acquisition - personne ayant lien de dépendance

The taxpayer’s son sold a building to the taxpayer at an amount (equal to its fair market value) that exceeded the son’s capital cost. After...

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25 September 1996 External T.I. 5-962794

Where a taxpayer designated $12,000 in a s. 110.6(19) election in respect of a property that she had acquired at a cost of $10,000 and had never...

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23 May 1996 External T.I. 9604655 - DEEMED REACQUISITION - WHETHER NON-ARM'S LENGTH

Where there is a deemed dispostion and reacquisition of property under s. 149(10), the corporation in question will not be considered to be...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) question of fact whether a corporation deals at arm's length with itself 74

24 June 1994 External T.I. 9325685 - TRANSFER OF PROPERTY TO A PARTNER

Because of the references in the opening of ss.13(7)(e) and 14(3) to "notwithstanding any other provision of this Act", those provisions will...

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24 July 1991 T.I. (Tax Window, No. 8, p. 18, ¶1430)

Where the aggregate of all gains realized by an individual on the transfer of various capital properties exceeds the capital gains exemption...

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29 December 1989 T.I. (May 1990 Access Letter, ¶1223)

Where depreciable property is transferred from the partnership to Opco, the depreciables would not be considered to be transferred from the...

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Subparagraph 13(7)(e)(i)

Administrative Policy

4 January 2012 Internal T.I. 2011-0408081I7 F - Transactions entre une société et ses actionnaires

A shareholder sells depreciable property to the corporation for a sum exceedingits fair market value ("FMV").

CRA confirmed that the capital cost...

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19 September 2001 External T.I. 2001-0086545 F - IMMEUBLE VENDU A PERTE

Respecting whether a taxpayer could claim a capital loss following the disposition of an immovable for which an election was made on February 22,...

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Subparagraph 13(7)(e)(ii)

Administrative Policy

4 March 2023 Internal T.I. 2023-0994501I7 - Non-resident non-arm's length transfer of property

A non-resident corporation (“US Corp”) sold trademarks at a sales price in excess of their adjusted cost base to a non-arm’s length Canadian...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Taxpayer Oceanspan inapplicable where the non-resident’s Canadian tax status is not relevant to the purpose of the provision 230

2019 Ruling 2018-0772921R3 - Loss utilization

Background

Aco, and its subsidiary Bco, had available capital losses that they did not anticipate using. The proposed transactions relate to...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(14) Class 14.1 property character maintained in circular-transfer transactions 265
Tax Topics - Income Tax Act - Section 111 - Subsection 111(1) - Paragraph 111(1)(b) self-cancelling circular transaction to convert net capital losses into stepped-up UCC 85

Paragraph 13(7)(e.1)

Administrative Policy

13 May 2003 Internal T.I. 2003-0001787 F - CHOIX-IMPACT SUR FNACC

An s. 110.6(19) election was made in 1994 pursuant respecting a rental property that, regarding the building portion, was at a value in excess of...

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Locations of other summaries Wordcount
Tax Topics - Statutory Interpretation - Ordinary Meaning clearly expressed legislative text to be followed, even though contrary to more favourable Finance intent 67

Paragraph 13(7)(f)

Articles

Ralph Neville, "Acquisition of Control and Corporate Losses", 1992 Conference Report (CTF), C. 25

½ step-up rule does not apply for capital gains purposes (p.25:7)

If a designation is made under paragraph 111(4)(e) with respect to depreciable...

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Paragraph 13(7)(g)

Administrative Policy

5 October 2018 APFF Roundtable Q. 16, 2018-0768871C6 F - Dépenses de bureau à domicile et d’automobile

In the course of a discussion of the deductibility of home office and automobile expense of an independent contractor where the property is held...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A capital cost of co-ownership interest 74
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Depreciable Property depreciable property must be owned 78
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Incurring of Expense payment of expenses of taxpayer by another does not preclude “incurring” by taxpayer 175
Tax Topics - Income Tax Act - Section 9 - Nature of Income payment of taxpayer’s expenses by another might give rise to s. 9 or 80 inclusion 199

7 October 2016 APFF Roundtable Q. 5, 2016-0652861C6 F - Véhicules électriques - rabais

By virtue of a program put in place by the Quebec government, a subsidy, which can amount to $8,000, is offered where an electric vehicle is...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(e) use of manufacturer’s electricity-use standard 94
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A installation cost included 37
Tax Topics - Income Tax Act - Section 6 - Subsection 6(2) Quebec government assistance does not reduce cost of purchased vehicle, but treated as compensation to dealer-lessor prorated over term of lease 259
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A cost not reduced under general principles by government assistance 139

19 January 2004 Internal T.I. 2003-0045911I7 F - Camionnette et définition de automobile

An extended-cab pick-up truck was included in Class 10.1 when it was acquired in 2002 but fell into Class 10 for years commencing after 2002...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(5) - Paragraph 13(5)(a) when truck is transferred from Class 10.1 to 10, the capital cost as originally limited under s. 13(7)(g) is used for Class 10 purposes 120
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Automobile application of s. 13(5) where extended-cab pick-up truck ceased to be an automobile 90

Subsection 13(7.1) - Deemed capital cost of certain property

Cases

Prince Albert Pulp Co. Ltd. v. The Queen, 92 DTC 6189, [1992] 1 CTC 262 (FCA)

In finding that the reduction of capital cost pursuant to s. 13(7.1) occurs in the year in respect of which the investment tax credit was...

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Words and Phrases
deducted

Canadian Pacific Ltd. v. The Queen, 88 DTC 6265, [1988] 1 CTC 429 (FCA)

S.36 does not preclude the application of s. 13(7.1). The capital cost of expenditures that were deemed to be additions to classes of depreciable...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(28) 43

The Queen v. Consumers' Gas Co. Ltd., 87 DTC 5008, [1987] 1 CTC 79 (FCA)

In finding that compensation received by the taxpayer from both commercial and public customers for changing the location of its pipelines was...

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Words and Phrases
assistance

The Queen v. AEL Microtel Ltd., 86 DTC 6348, [1986] 2 CTC 108 (FCA)

Although development incentives paid pursuant to the Regional Development Incentives Act (Canada) (the "RDIA") for the acquisition of...

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Consumers' Gas Co. Ltd. v. The Queen, 86 DTC 6132, [1986] 1 CTC 380 (FCTD), aff'd 87 DTC 5008, [1987] 1 CTC 79 (FCA)

Reimbursements received by the taxpayer from governmental authorities for relocating its pipelines at their request did not constitute...

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Words and Phrases
assistance
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 9 - Compensation Payments recurring compensation for moving capital assets on capital account 105

The Queen v. British Columbia Forest Products Ltd., 85 DTC 5577, [1986] 1CTC 1 (FCA)

"Parliament has expressly contemplated that a taxpayer may 'receive' assistance from a government in the form of a 'deduction from tax.'" The...

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Words and Phrases
receive
Locations of other summaries Wordcount
Tax Topics - Statutory Interpretation - Context 87

Consumers' Gas Company Ltd. v. The Queen, 82 DTC 6300, [1982] CTC 339 (FCTD), aff'd, 84 DTC 6058, [1984] CTC 83 (FCA)

Amounts received from government (and private) sources to compensate in whole or in part for the cost of relocating pipelines were not a "grant,...

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Words and Phrases
subsidy

Fonthill Lumber Ltd. v. The Queen, 81 DTC 5333, [1981] CTC 406 (FCTD)

The amount of a government forgivable loan is deducted from the capital cost at the time that the conditions for forgiving the loan are met, not...

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Ottawa Valley Power Co. v. MNR, 69 DTC 5166, [1969] CTC 242 (Ex Ct), aff'd 70 DTC 6223, [1970] CTC 305, [1970] S.C.R. 941

S.20(6)(h) of the pre-1972 Act did not apply where Ontario Hydro, at its own cost, expended approximately $1.9 million to convert the facilities...

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Administrative Policy

2 April 2014 External T.I. 2014-0521041E5 F - Application de 13(7.1)

A taxpayer receives government assistance to build a manure pit. Does s. 13(7.1) apply automatically and, if it does not apply, is the s. 13(7.4)...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7.4) general requirements for s. 13(7.4) to apply 207

31 January 2013 Internal T.I. 2012-0466641I7 F - Réduction du coût en capital d'un bien

The entitlement to the Quebec investment tax credit does not arise until the very end of the taxation year in which the eligible expenditures were...

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6 September 2011 External T.I. 2010-0389011E5 F - L'interprétation de " est en droit de recevoir"

Is a taxpayer "entitled to receive" the amount of the investment tax credit for manufacturing and processing equipment in Québec (the “Credit")...

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Words and Phrases
entitled to receive

22 January 2008 External T.I. 2006-0165521E5 F - Prime versé à l'emprunteur

A borrower who receives a number of loans under the Quebec Immigrant Investor Program has a major investment project following the acquisition of...

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22 January 2007 External T.I. 2006-0212641E5 F - Crédit de taxe sur le capital du Québec

Under s. 1135.1 et seq., a corporation may benefit from a non-refundable capital tax credit for a taxation year, equal to 5% of the amount of the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 127 - Subsection 127(11.1) - Paragraph 127(11.1)(b) Quebec tax credit for qualified investments is deducted under s. 127(11.1)(b) in accordance with the ITTN No. 29 timing 298

4 October 2002 Internal T.I. 2002-0139807 F - REMBOURSEMENT DE TPS

The Directorate indicated that a GST rebate claimed by employee respecting CCA deducted for Year 1 on car, but with the rebate claimed in Year 2,...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 6 - Subsection 6(8) - Paragraph 6(8)(b) GST rebate claimed by employee re CCA on car after its sale reduces UCC pursuant to J of formula rather than under s. 13(7.1) 98
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - J GST rebate received after sale of asset would not, under J of UCC formula, produce recapture 126

2 January 2002 External T.I. 2001-0094555 F - Subsidies and Assistance Payments

Quebec government assistance to the taxpayer to increase the productive capacity of its facilities took the form of covering a portion of the...

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12 October 1992 External T.I. 5-922359

S. "13(7.1) of the Act does not apply in general in respect of business arrangements between a public authority and a taxpayer where the public...

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19 September 1990 Memorandum 902190

A government loan which is unconditionally repayable would not constitute government assistance for purposes of s. 13(7.1). However, where a...

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Articles

John Tobin, "Infrastructure and P3 Projects", 2017 Conference Report (Canadian Tax Foundation), 10:1-31

Whether P3 progress payments are cost reductions or revenue (p. 10:9-10)

One challenge is determining how to treat progress payments during the...

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Paragraph 13(7.1)(f)

Administrative Policy

28 June 2010 External T.I. 2009-0350241E5 F - Crédit d'impôt pour investissement du Québec

After finding that the Quebec investment tax credit under the Taxation Act (“TA”) reduces the cost of depreciable property under s. 13(7.1)...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) - Subparagraph 12(1)(x)(vi) Quebec investment tax credit is deducted under s. 13(7.1) rather than included under s. 12(1)(x) 90
Tax Topics - Income Tax Act - Section 127 - Subsection 127(9) - Government Assistance Quebec investment tax credit is government assistance 46

6 November 2007 External T.I. 2007-0234681E5 F - Crédit de taxe sur le capital - moment

Regarding whether the Quebec capital tax credit should be recognized at the end of a taxation year notwithstanding that it has not yet been...

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Subsection 13(7.2)

Administrative Policy

7 June 2010 External T.I. 2009-0331731E5 F - CII et crédit de taxe sur le capital du Québec

A limited partnership ("LP") with an October 31 fiscal period acquires property eligible for the Quebec investment tax credit for manufacturing...

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Subsection 13(7.4) - Deemed capital cost

See Also

GMAC Leaseco Corporation v. The Queen, 2015 DTC 1141 [at 908], 2015 TCC 146

GMAC received "support payments" from GMC in order to inflate the residual values stated in its leases of cars to GMC customers, thereby reducing...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) amount subject to potential repayment obligation was not received 258
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Timing capital tax accrued from day to day 226
Tax Topics - Income Tax Act - Section 9 - Compensation Payments payments received in consideration for reducing lease payments were compensation for lost lease income, and s. 9 income 284
Tax Topics - Income Tax Act - Section 9 - Computation of Profit surcharges received by lessor at lease termination for excess use were income 264
Tax Topics - Income Tax Act - Section 9 - Timing inducement payments received by lessor from manufacturer not income until potential repayment obligation quantified 221

Administrative Policy

2 April 2014 External T.I. 2014-0521041E5 F - Application de 13(7.1)

A taxpayer receives government assistance to build a manure pit. Does s. 13(7.1) apply automatically and, if it does not apply, is the s. 13(7.4)...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7.1) no s. 13(7.4) election required where s. 13(7.1) applies 123

4 May 1992 Tax Executive's Roundtable, Question 11 (December 1992 Access Letter, p. 48)

RC does not insist on any particular format for the election, but requires some positive indication that the election has been made.

27 February 1991 Memorandum (Tax Window, Prelim. No. 3, p. 25, ¶1131; July 1991 Access Letter)

If an inducement payment can be used at the sole discretion of the taxpayer to reduce the cost of current capital expenditures, the amount will be...

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IT-273R2, "Government Assistance - General Comments," para. 12

the election should be made by means of a signed letter accompanying the applicable tax return.

Subsection 13(7.5) - Deemed capital cost

Administrative Policy

S3-F4-C1 - General Discussion of Capital Cost Allowance

Access road example

1.48 …

Example 4

In order to be able to establish a sports arena at a particular location, a taxpayer builds a road to the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense 556
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A 791
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Depreciable Property 324
Tax Topics - Income Tax Act - Section 16.1 - Subsection 16.1(1) 275
Tax Topics - Income Tax Act - Section 13 - Subsection 13(28) 254
Tax Topics - Income Tax Act - Section 13 - Subsection 13(27) 222
Tax Topics - Income Tax Act - Section 13 - Subsection 13(29) 155
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(2) 212
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(2.2) 351
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(3) 70
Tax Topics - Income Tax Act - Section 18 - Subsection 18(3.1) 166
Tax Topics - Income Tax Act - Section 261 - Subsection 261(2) 65
Tax Topics - Income Tax Act - Section 128.1 - Subsection 128.1(1) - Paragraph 128.1(1)(b) 230
Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(c) 170
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(e) 65
Tax Topics - Income Tax Act - Section 43 - Subsection 43(1) 152
Tax Topics - Income Tax Act - Section 68 197
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21.1) - Paragraph 13(21.1)(a) 75
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21.1) - Paragraph 13(21.1)(b) 212
Tax Topics - Income Tax Act - Section 13 - Subsection 13(1) 431
Tax Topics - Income Tax Act - Section 8 - Subsection 8(2) 75
Tax Topics - Income Tax Act - Section 20 - Subsection 20(16.1) 152
Tax Topics - Income Tax Act - Section 13 - Subsection 13(9) 229
Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) 321
Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 237
Tax Topics - Income Tax Act - Section 13 - Subsection 13(5) 317
Tax Topics - Income Tax Act - Section 13 - Subsection 13(6) 221

Paragraph 13(7.5)(b)

Administrative Policy

27 March 2014 External T.I. 2014-0520941E5 F - Industrial mineral mine and related expenditures

The costs of a temporary access road to a quarry would not be considered to be in respect of a "specified temporary access road" as defined in...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 17 access road to quarry was Class 17 property notwithstanding that not owned 164
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(1) - Paragraph 1100(1)(g) ordinary meaning of "mineral" 43
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Start-Up and Close-Down Expenditures expenditures deductible where incurred prior to acquisition decision 154

Subsection 13(9)

Administrative Policy

S3-F4-C1 - General Discussion of Capital Cost Allowance

Deemed disposition on asset migration

1.107 … In applying paragraph 13(7)(a) in respect of a person not resident in Canada, subsection 13(9)...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense 556
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A 791
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Depreciable Property 324
Tax Topics - Income Tax Act - Section 16.1 - Subsection 16.1(1) 275
Tax Topics - Income Tax Act - Section 13 - Subsection 13(28) 254
Tax Topics - Income Tax Act - Section 13 - Subsection 13(27) 222
Tax Topics - Income Tax Act - Section 13 - Subsection 13(29) 155
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(2) 212
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(2.2) 351
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(3) 70
Tax Topics - Income Tax Act - Section 18 - Subsection 18(3.1) 166
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7.5) 207
Tax Topics - Income Tax Act - Section 261 - Subsection 261(2) 65
Tax Topics - Income Tax Act - Section 128.1 - Subsection 128.1(1) - Paragraph 128.1(1)(b) 230
Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(c) 170
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(e) 65
Tax Topics - Income Tax Act - Section 43 - Subsection 43(1) 152
Tax Topics - Income Tax Act - Section 68 197
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21.1) - Paragraph 13(21.1)(a) 75
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21.1) - Paragraph 13(21.1)(b) 212
Tax Topics - Income Tax Act - Section 13 - Subsection 13(1) 431
Tax Topics - Income Tax Act - Section 8 - Subsection 8(2) 75
Tax Topics - Income Tax Act - Section 20 - Subsection 20(16.1) 152
Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) 321
Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 237
Tax Topics - Income Tax Act - Section 13 - Subsection 13(5) 317
Tax Topics - Income Tax Act - Section 13 - Subsection 13(6) 221

16 September 2011 Internal T.I. 2010-0383571I7 - Transfer of Property to a US Head Office

where depreciable equipment used in the Canadian branch of a US corporation is moved to its US head office, s. 13(9) will apply to cause s....

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Subsection 13(16) - Election concerning vessel

Administrative Policy

16 August 1995 External T.I. 9512405 - VESSELS - PARTIAL DISPOSITION & 13(16) ELECTION

A partial disposition of a vessel will qualify as a disposition of a vessel for purposes of s. 13(16).