(21.1)-(37)

Subsection 13(21.1) - Disposition of building

Administrative Policy

11 March 2013 External T.I. 2012-469231E5 F

A disposition by the taxpayer of a building and contiguous land (necessary for the building's use) would have given rise to a terminal loss in the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21.2) 385

Paragraph 13(21.1)(a)

Administrative Policy

11 March 2013 External T.I. 2012-0469231E5 F - Deferred terminal loss

An individual, who disposed a building (with an accrued terminal loss) and its contiguous land (which was necessary for the use of the building...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21.2) notional properties fall in same class so that losses suspended until triggering events for all properties/ordering of dispositions to affiliated and unaffiliated transferees generally not relevant 435

2016 Ruling 2016-0635101R3 - 55(3)(a) Spin-Off to Use Parent Losses

Part of s. 55(3)(a) spin-off and immediate sale

It is proposed that the Property be spun-off by Subco to a newly-incorporated subsidiary of Parent...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a) 55(3)(a) spin-off of property already subject to sale agreement to parent before closing date 592
Tax Topics - Income Tax Act - Section 86 - Subsection 86(1) s. 86(1) applied where “dirty” s. 85 exchange mechanic used, but no s. 85 election made 93
Tax Topics - Income Tax Act - Section 85 - Subsection 85(1) - Paragraph 85(1)(a) elected amount deterines proceeds before s. 13(21.1)(a) grind 203

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

Purpose of required allocation

1.87 Paragraph 13(21.1)(a) applies where both a building and land are disposed of in the same tax year… . [T]he...

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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 218
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)(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(21.1)(b)

See Also

Grondin v. Agence du revenu du Québec, 2019 QCCQ 1059

An uninsured barn of the taxpayer used in her pig-farming operation burned down. There would have been a resulting terminal loss, equalling the...

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9136-6872 Québec Inc. v. The Queen, 2010 TCC 91, 2010 DTC 1263 [at 3833]

Paragraph 13(21.1)(b) applies as long as land is not disposed of in the same year as a building on the land.

The taxpayer purchased a building...

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Administrative Policy

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

Example of reduction of terminal loss

1.94 …

Example 9

In 2014, a taxpayer sells a building that is a rental property for $100,000. The taxpayer...

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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 218
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(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

25 July 2007 External T.I. 2007-0222251E5 F - Perte finale sur un immeuble démoli

A Canadian-controlled private corporation demolished a building on its land, realized a terminal loss and, on the same land, erected a new rental...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition demolition of a building is its disposition 42

Subsection 13(21.2) - Loss on certain transfers

Commentary

Loss suspension

S. 13(21.2) applies to suspend a terminal loss on a disposition of depreciable property by a person or partnership (referred to as...

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Administrative Policy

2 April 2015 External T.I. 2015-0571501E5 F - Perte sur certains transferts

A partnership transferred a depreciable property to an affiliated person for proceeds less than its undepreciated capital cost, and then ceased to...

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11 March 2013 External T.I. 2012-469231E5 F

A number of depreciable properties in the same class are transferred to an affiliated person, so that s. 13(21.2)(e)(iii) deems the transferor to...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21.1) 201

3 January 2013 External T.I. 2012-0460011E5 - Subsection 13(21.2)

A taxable Canadian corporation ("Canco") sells a depreciable property, with a fair market value lower than its undepreciated capital cost, for its...

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11 March 2013 External T.I. 2012-0469231E5 F - Deferred terminal loss

First Situation

S. 13(21.2) applied to the transfer of all the depreciable properties in a prescribed class to an affiliated person. Could ss. 85...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21.1) - Paragraph 13(21.1)(a) s. 13(21.1)(a) adjusts the proceeds as determined under s. 85 310

7 January 2013 External T.I. 2012-0452611E5 - Subsection 13(21.2)

CRA considered a scenario in which an individual transfers a depreciable property to his or her spouse and elects under s. 73(1) for the transfer...

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2010 Ruling 2009-0347301R3 - Does s.s. 13(21.2) apply on s.s. 98(5) rollover

Debt owing by a limited partnership to its limited partner is converted into equity; and the limited partnership (which has a large number of...

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21 March 2007 External T.I. 2004-0091061E5 - stop loss rules for depreciable property

S. 13(21.2) would not apply to a transfer of depreciable property from a personal trust to a person affiliated with the trust, with the trust...

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25 July 2005 External T.I. 2005-0125501E5 - Subsection 13(21.2)

Aco and Bco (which are both owned by Holdco) carry on two distinct businesses with Class 13 properties. Aco transfers all its property to Newco,...

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10 October 2003 APFF Roundtable Q. 14, 2003-0030095 F - Inter. Between Sub. 13(21.2) & 88(1) of ITA

Where a subsidiary corporation has had s. 13(21.2) apply to a transfer of depreciable property to its parent corporation, and the subsidiary is...

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1999 TEI Round Table, Q. XXII 992951

Where Aco transfers depreciable property to an affiliated corporation (Bco), the terminal loss of Aco will cease to be suspended when Bco ceases...

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Subsection 13(26) - Restriction on deduction before available for use

Administrative Policy

1993 December Tax Executive Institute Roundtable, 5-932784

On the acquisition of control of a corporation, it is deemed to have claimed additional CCA under s. 111(5.1) on property which is not available...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(27) 30

Subsection 13(27) - Interpretation — available for use

Administrative Policy

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

Capable of producing salable product

1.34

Example 2

Company B purchased specialized machinery for use in its manufacturing business. 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 218
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(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
Tax Topics - Income Tax Act - Section 13 - Subsection 13(6) 221

18 October 2011 External T.I. 2011-0401381E5 - Capital Cost Allowance for a Partnership

In our opinion, paragraph 13(27)(f) of the Act would not apply where depreciable property is acquired by a partnership even if the only members...

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1993 December Tax Executive Institute Roundtable, 5-932784

"With regard to equipment in the testing stage, it is our opinion that the testing activity would not qualify equipment to be considered...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(26) 28

21 April 1993 T.I. (Tax Window, No. 31, p. 9, ¶2518)

A fishing vessel cannot be considered to be capable of performing the function for which it was acquired until all permits, certificates and...

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15 April 1992 T.I. (Tax Window, No. 18, p. 13, ¶1846)

Even though a corporation is permitted a deduction under s. 20(1)(c) for interest on money borrowed to acquire equipment that is being tested, the...

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November 1991 Memorandum (Tax Window, No. 12, p. 19, ¶1567)

A machine is "available for use" if it is capable of producing a commercially saleable product or extensive alterations are required to bring it...

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24 June 1991 T.I. (Tax Window, No. 4, p. 14, ¶1314)

Equipment which has been acquired and is being tested is not considered for purposes of s. 13(27)(a) to be used for the purpose of earning income....

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90 C.P.T.J. - Q.15

A well must be tied into a gas gathering system which in turn must be connected to a commercial gas plant in order to meet the requirements of...

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Articles

Sinclair, "Depreciable Property: A Review of Recent Legislative Developments", 1991 Conference Report, c. 26.

Paragraph 13(27)(b)

Articles

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

Whether 2-year rolling-start rule in s. 13(27(b)) should be applied to Class 14 property acquired in a P3 construction project on an...

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Shane Onufrechuk, Warren Pashkowick, "Tax Considerations of Major Construction Projects", 2014 Conference Report, Canadian Tax Foundation, 10:1-35.

Use of rolling-start rule in s. 13(27)(b) to accelerate CCA (p. 10:20)

[G]iven the long duration of major construction projects, the rolling-start...

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Paragraph 13(27)(d)

See Also

Morley v. The Queen, 2004 DTC 2604, 2004 TCC 280, briefly aff'd 2006 DTC 6351, 2006 FCA 171

Software allegedly acquired by a partnership in 1993 was not available for use in that year given that no sales of the software were ever made...

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Brown v. The Queen, 2001 DTC 1094 (TCC), aff'd supra 2003 DTC 5298 (FCA)

A partnership acquired game "engines" (i.e., programs that would become functional games when graphic "shells" were added) at the end of 1993. The...

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Words and Phrases
commercially saleable

Subsection 13(28) - Idem [Interpretation — available for use]

Administrative Policy

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

Example of two-year rolling start rule

1.33

Example 1

Company A owns a Class 1 building that is used to earn business income. Near the end of...

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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 218
Tax Topics - Income Tax Act - Section 16.1 - Subsection 16.1(1) 275
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
Tax Topics - Income Tax Act - Section 13 - Subsection 13(6) 221

19 December 2003 Internal T.I. 2003-0035347 - AVAILABLE FOR USE RULES

In connection with indicating that a building that was to be used as a sawmill which was substantially complete but was not yet operational (e.g.,...

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16 October 1992 Memorandum 922845 (September 1993 Access Letter, p. 406, ¶C9-284)

A leasehold improvement referred to in Regulation 1102(5) is a building only for purposes of Schedule II and not for other purposes of the Act...

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22 April 1992 Memorandum 920983 (May 1993 Access Letter, p. 191, ¶C20-069)

A building purchased by a taxpayer requiring extensive renovations will be eligible for capital cost allowance claims in the year of acquisition....

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Subsection 13(29) - Idem [Interpretation — available for use]

Administrative Policy

1 October 2020 Internal T.I. 2019-0821651I7 - Filing of Long Term Project Election

Is the long-term project election under s. 13(29 required to be filed only once? The Directorate concluded:

The Long-Term Project Election is...

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

Overview

1.37 Subsection 13(29) provides an election in respect of property acquired for use in a long-term project. The property can be 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 218
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 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
Tax Topics - Income Tax Act - Section 13 - Subsection 13(6) 221

Articles

Shane Onufrechuk, Warren Pashkowick, "Tax Considerations of Major Construction Projects", 2014 Conference Report, Canadian Tax Foundation, 10:1-35.

Long-term project rule may permit faster CCA write-offs for long-term projects (p. 10:20)

When the creation of an asset in a major construction...

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Subsection 13(34)

Paragraph 13(34)(a)

Administrative Policy

19 May 2020 Internal T.I. 2020-0841791I7 - Application of paragraph 111(4)(e)

In connection with an acquisition of its control, Canco used a s. 111(4)(c) and(d) write-down of debt owing by a controlled foreign affiliate to...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 111 - Subsection 111(4) - Paragraph 111(4)(e) IP that were not on target’s tax books could be written up under s. 111(4)(e) 248

Paragraph 13(34)(b)

See Also

Commissioner of Taxation v Sharpcan Pty Ltd, [2019] HCA 36

Due to a regulatory change, a hotel owner which had been sharing in the revenues generated from 18 gaming machines on its premises was required to...

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Words and Phrases
goodwill
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Contract Purchases or Prepayments 10-year gaming licences required to maintain existing gaming revenues were purchased on capital account 350
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Concessions and Licences periodic payments under 30-year government concession were currently deductible 206
Tax Topics - General Concepts - Purpose/Intention purpose distinguished from motive 237

Subsection 13(35)

Administrative Policy

28 January 2021 Internal T.I. 2019-0817641I7 - Acquisition of rights to pension surplus

A portion of the purchase price paid for the acquisition of a business of the Seller by the Purchaser was allocated to the actuarial surplus in 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 - Actuarial Surplus CRA finds that the purchase price of a business allocated to the actuarial surplus for a defined benefit plan was a non-deductible capital expenditure 517
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(e) purchased actuarial surplus was a reserve 195
Tax Topics - Income Tax Act - Section 78 - Subsection 78(4) s. 78(4) exclusion would apply to the purchase of actuarial surplus 191

Paragraph 13(35)(a)

Administrative Policy

27 November 2018 CTF Roundtable Q. 15, 2018-0780011C6 - Class 14.1

Class 14.1 depreciable property references “property” of the taxpayer. Does this have the effect of disqualifying, as Class 14.1 additions,...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 14.1 Class 14.1 “property” need not be property 93

Subsection 13(38)

Finance

5 October 2018 Financial Strategies and Instruments Roundtable, Finance Response to Q.6

An individual transfers a directly-held pharmacy business to a wholly-owned Newco in 2017. On January 1, 2017, the cumulative eligible capital...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 85 - Subsection 85(1) - Paragraph 85(1)(h) Finance is reviewing the interaction of the Class 14.1 transitional, and s. 85(1) rollover, rules 189

Paragraph 13(38)(a)

Administrative Policy

7 June 2016 External T.I. 2016-0641851E5 - ECP Rules NAL Disposition

As a result of the taxpayer’s acquisition of eligible capital property from a non-arm’s length transferor prior to January 1, 2017, the amount...

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Paragraph 13(38)(b)

Subparagraph 13(38)(b)(ii)

Administrative Policy

27 September 2016 External T.I. 2016-0660861E5 - partial disposition of farm quota

A taxpayer, who owns farm quota purchased at various times and prices before January 1, 2017, thereafter sells a fraction of the farm quota. What...

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Paragraph 13(38)(c)

Administrative Policy

27 October 2017 External T.I. 2017-0688971E5 F - New Class 14.1

The CEC balance on December 31, 2016 in respect of Mr. X’s business was $75,000, equaling 75% of previously purchased goodwill and with no s....

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(39) non-application on s. 85 roll can result in recapture -but disposition bump available to NAL transferee 117
Tax Topics - Income Tax Act - Section 85 - Subsection 85(1) - Paragraph 85(1)(e) permitted agreed amount for Class 14.1 property rollover must be UCC even where amortized cost (equalling boot) is higher 192

Paragraph 13(38)(d)

Administrative Policy

9 March 2017 External T.I. 2016-0680071E5 F - Règles transitoires - immobilisations admissibles

At the 2016 CTF Annual Conference, Q13, CRA indicated that the s. 13(38)(d)(iii) election to maintain the effect of the s. 14(1)(b) inclusion is...

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27 March 2017 External T.I. 2016-0680141E5 - Subsection 13(38)

In December 2016, a corporation with an April 30, 2017 year end and which had previously incurred eligible capital expenditures, such as...

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29 November 2016 CTF Roundtable Q. 13, 2016-0669721C6 - ECE/Class 14.1

Proposed s. 13(38)(d)(iii) provides in the case of a taxation year straddling January 1, 2017, a taxpayer would have had a particular amount...

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Articles

Lorne Richter, "ECP Transitional Rules and 2016 Asset Sales", Canadian Tax Highlights, Vol. 24, No. 7, July 2016, p. 12

Potential application of transitional rule for years straddling 1 January 2017 (p. 12)

[A] transitional rule (proposed paragraph 13(37)(d))...

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Subparagraph 13(38)(d)(iii)

Administrative Policy

6 October 2017 APFF Roundtable Q. 11, 2017-0709091C6 F - Transitional rules - Class 14.1

Where a partnership (the "Partnership") with a calendar year end, but whose corporate partners (the "Partners") have March 31 taxation year ends,...

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Subsection 13(39)

Administrative Policy

27 October 2017 External T.I. 2017-0688971E5 F - New Class 14.1

Goodwill of a business was purchased in 2016 for $100,000, resulting in a cumulative eligible capital balance on December 31, 2016 of $75,000...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(38) - Paragraph 13(38)(c) a s. 85 roll of purchased goodwill at an agreed amount of unamortized cost can trigger recapture 250
Tax Topics - Income Tax Act - Section 85 - Subsection 85(1) - Paragraph 85(1)(e) permitted agreed amount for Class 14.1 property rollover must be UCC even where amortized cost (equalling boot) is higher 192

Subsection 13(42)

Paragraph 13(42)(a)

Administrative Policy

9 November 2016 External T.I. 2016-0664451E5 - ECP Rules

S. 14(3) reduced a corporation’s eligible capital expenditure for its $1,000,000 purchase before 2017 of an eligible capital property (ECP) to...

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