Subsection 16.1(1) - Leasing properties
Administrative Policy
17 February 2021 External T.I. 2018-0768051E5 F - Contrat de crédit-bail
Regarding a lease of a truck tractor, CRA indicated that the s. 16.1 election could not be made, as a truck tractor is prescribed property.
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|---|---|---|
| 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 13 - Subsection 13(5.2) | acquisition of leased vehicle pursuant to bargain purchase option followed by sale of vehicle could engage s. 13(5.2) | 131 |
| Tax Topics - General Concepts - Substance | lease payments, but not the lease itself, could be recharacterized | 93 |
S3-F4-C1 - General Discussion of Capital Cost Allowance
Overview
1.26 Subsection 16.1(1) provides special rules to allow a lessee to claim CCA on certain property (other than property prescribed by...
28 April 2015 External T.I. 2015-0566011E5 - Whether s. 16.1 applies to a transport truck
Before concluding that "since a transport truck would be considered exempt property, a lessee and a lessor would not be entitled to elect under...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(9) | deferred deduction of initial lease "down payment" | 149 |
15 December 2014 External T.I. 2014-0548041E5 - Leasing Properties
CRA stated:
Since subsection 16.1(1) is not listed in section 600, a subsection 16.1(1) election cannot be late-filed.
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|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 8000 - Paragraph 8000(a) | primary purpose of logging trucks not highway use | 117 |
18 June 2014 External T.I. 2013-0516251E5 - Paragraph 16.1(1)(b) - the particular time
Does "the particular time" in s. 16.1(1)(b) mean the time when the lease began or when it was entered into? CRA stated:
[S.] 16.1(1)… states...
22 August 2000 External T.I. 2000-0002885 - SALE/LEASEBACK TRANSACTION
As s. 16.1(1)(b) does not deem a taxpayer to have disposed of an acquired or reacquired property, Regulations 1100(2.21) will not apply to the...
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|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(2.21) | 26 | |
| Tax Topics - Income Tax Regulations - Regulation 1103 - Subsection 1103(2d) | 4 |
8 June 1993 T.I. (Tax Window, No. 32, p. 18, ¶2615)
After the confirmation of Finance that it was not intended that an election under s. 16.1 should cause equipment not to qualify for an investment...
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|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 2902 | 48 |
7 May 1993 T.I. (Tax Window, No. 31, p. 7, ¶2514)
Re effect of election on availability of investment tax credit.
13 November 1991 T.I. (Tax Window, No. 13, p. 18, ¶1594)
A partnership is a person for purposes of s. 16.1. The partner who is first required to file an income tax return for the taxation year in which...
89 C.R. - Q.8
"A lease is a contract by which a person who owns property grants to another the right to possess, use and enjoy the property for a specific...
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|---|---|---|
| Tax Topics - General Concepts - Substance | 49 |
IT285R2 ARCHIVED - "Capital Cost Allowance - General Comments" 31 March 1994
22. Where by joint election subsection 16.1(1) applies to leased tangible property, the lessee is deemed to have acquired the property, at the...
Articles
R. Ashton, "Leasing: Recent Developments", 1997 Corporate Management Tax Conference Report, c. 11.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(1) - Right to Receive Production | 0 | |
| Tax Topics - Income Tax Act - Section 181 - Subsection 181(3) | 0 |
Howick, "Income Tax Aspects of Leasing", Tax Profile, May 1992, p. 211
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(1.1) | 0 |
Paragraph 16.1(1)(f)
Administrative Policy
9 November 2001 External T.I. 2001-0101685 F - APPLICATION DE 16.1 ET DE 85(1)
A property for which an s. 16.1(1) election has been made cannot be transferred on a rollover basis under s. 85(1) given that, in the absence of...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 85 - Subsection 85(1) | a property for which an s. 16.1(1) election has been made cannot be transferred on a rollover basis under s. 85(1) | 83 |