Subsection 1102(1)
Paragraph 1102(1)(a)
Administrative Policy
92 CPTJ - Q.13
Where a "mothballed" facility is transferred by a parent to a subsidiary, is held by the subsidiary as in adventure of the nature of trade and...
Paragraph 1102(1)(b)
Cases
C.A.E. Inc. v. Canada, 2013 DTC 5084 [at 5944], 2013 FCA 92
The taxpayer leased or entered into leases by it of flight simulators it had manufactured. For financing reasons, it entered into sale and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Depreciable Property | characterization of depreciable property or inventory done on annual basis | 371 |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(a) | change in use on depreciable property conversion to inventory | 124 |
| Tax Topics - Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(a) | applied to conversion of depreciable property into inventory | 184 |
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Machinery and Equipment | 371 |
See Also
Sivasubramaniam v. The Queen, 2008 DTC 3886, 2008 TCC 261 (Informal Procedure)
The taxpayer argued that his rental condominium units were not rental properties because they had been acquired by him with a view to their resale...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Real Estate | hope to dispose of at gain consistent with capital property | 64 |
| Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(14) | 79 | |
| Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(c) | capital gains from resale not a permitted purpose | 63 |
Administrative Policy
25 September 2007 Internal T.I. 2007-0226751I7 F - Gain en capital versus revenu d'entreprise
The corporation’s regular activities involved the purchase of particular (redacted) types of equipment or vehicles that were damaged and/or...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Machinery and Equipment | the regular refurbishing, rental then sale at a gain of machines gave rise to business profits | 109 |
20 July 2000 Internal T.I. 2000-0035017 - Conversion Capital Property to Inventory
When trucks of a leasing company reach the termination of the respective leases at the three-year point, there is a conversion of capital property...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Computation of Profit | 105 |
Paragraph 1102(1)(c)
Cases
Hickman Motors Limited, Appellant v. Her Majesty the Queen, Respondent, 97 DTC 5363, [1997] 2 S.C.R. 336, [1998] 1 CTC 213
The taxpayer received equipment on the winding-up of the wholly-owned subsidiary and, five days later, transferred the same assets to another...
Interprovincial Co-operative Ltd. v. The Queen, 87 DTC 5115, [1987] 1 CTC 222 (FCTD)
A manufacturing plant which had been shut down and foreclosed upon several years previously was reacquired by the taxpayer because its parent had...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Onus | 62 | |
| Tax Topics - Income Tax Act - Section 135 - Subsection 135(4) - Income of the Taxpayer Attributable to Business Done With Members | 53 |
Roywood Investments Ltd. v. The Queen, 79 DTC 5451, [1980] CTC 19 (FCTD), aff'd 81 DTC 5148, [1981] CTC 206 (FCA)
The sole purpose of the taxpayer in purchasing land with a building was to realize a substantial capital gain from the property when the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(c) | 70 | |
| Tax Topics - Income Tax Act - Section 68 | 67 |
Bureau et Bureau Inc. v. The Queen, 78 DTC 6562, [1978] CTC 695 (FCTD)
It was found that several old residential and commercial buildings had been purchased by the appellant with the intention of eventually...
Ben’s Ltd. v. MNR, 55 DTC 1152, [1955] CTC 249 (Ex Ct)
In order to expand its factory, the taxpayer acquired three adjoining properties comprising land and three dwelling houses. In finding that the...
See Also
Damis Properties Inc. v. The Queen, 2021 TCC 24
The taxpayers, after their subsidiaries realized capital gains liabilities from the sale of a farm (held through partnerships), sold those...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 160 - Subsection 160(1) | s. 160 did not apply to a sale of companies holding cash sales proceeds to a purchaser who purported to eliminate the tax liability | 785 |
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(1) - Tax Benefit | no tax benefit based on comparison to a commercially unrealistic alternative | 276 |
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(3) | no avoidance transaction where there was no intention to avoid the provision purportedly abused | 339 |
| Tax Topics - General Concepts - Onus | unfair to place the onus on taxpayer re facts which taxpayer could not reasonably be expected to know | 339 |
568864 B.C. Ltd. v. The Queen, 2014 TCC 373
The taxpayer - which was a member of group of companies that included a producer of exterior trim boards for construction ("W.L.") – earned...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Ownership | beneficial ownership in patents | 434 |
| Tax Topics - Income Tax Act - Section 79.1 - Subsection 79.1(2) | beneficial ownership in patents | 434 |
Garber v. The Queen, 2014 DTC 1045 [at 2812], 2014 TCC 1
The taxpayer bought units in a limited partnership, which was to acquire a large yacht to be used for catered vacation charters. The general...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Depreciable Property | title not held by GP on behalf of partnership | 122 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | expenses mere window-dressing | 135 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) | no source required if reasonable expectation of income | 241 |
| Tax Topics - Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit | fraudulent scheme not a source | 240 |
| Tax Topics - Income Tax Act - Section 96 | GP had fraudulent intention | 241 |
Jolly Farmer Products Inc. v. The Queen, 2008 DTC 4396, 2008 TCC 409
In finding that the taxpayer was entitled to deduct capital cost allowance in respect of houses situate close to the taxpayer's greenhouse...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | 119 |
Sivasubramaniam v. The Queen, 2008 DTC 3886, 2008 TCC 261 (Informal Procedure)
Bowman C.J. indicated that if the taxpayer's submission, that he acquired condominium rental units for the purpose of the resale thereof at a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Real Estate | hope to dispose of at gain consistent with capital property | 64 |
| Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(14) | 79 | |
| Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(b) | 111 |
Sherman v. The Queen, 2008 DTC 3069, 2008 TCC 186, aff'd 2009 DTC 5681, 2009 FCA 9
The taxpayers were found to have acquired rights in respect of computer software solely for tax-motivated reasons, with no ancillary...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A | 102 |
McCoy v. The Queen, 2003 DTC 660, 2003 TCC 332
Before going on to find that a limited partnership had acquired software for the purpose of gaining or producing income, Bowman A.C.J. stated (at...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Evidence | 122 | |
| Tax Topics - General Concepts - Purpose/Intention | intention objectively determined having regard to the material presented to investors | 83 |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A | 202 | |
| Tax Topics - Income Tax Act - Section 96 - Subsection 96(2.2) - Paragraph 96(2.2)(d) | 118 | |
| Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(15) | 113 |
Brown v. The Queen, 2001 DTC 1094 (TCC), aff'd supra 2003 DTC 5298 (FCA)
The word "income" in Regulation 1102(1)(c) means an amount that would be subject to tax, not net income. That requirement was satisfied with...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Fair Market Value - Other | 209 | |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A | 71 | |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(27) - Paragraph 13(27)(d) | 143 | |
| Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) | partnership purchase was NAL given that GP's shareholder acted in concert with vendor | 145 |
| Tax Topics - Income Tax Act - Section 96 - Subsection 96(2.2) - Paragraph 96(2.2)(d) | 69 |
Gascho Farms Ltd. v. The Queen, 97 DTC 808, [1997] 1 CTC 2092 (TCC)
A residential property that the taxpayer received as partial consideration for the sale by it of substantially all its properties and that it...
Malatest v. The Queen, 94 DTC 1779 (TCC), briefly aff'd 96 DTC 6377 (FCA)
The taxpayers, were unsuccessful in their initial attempts to sell their Toronto condominium unit after purchasing a Toronto house and commenced...
Moldaver v. MNR, 92 DTC 1564, [1992] 2 CTC 2055 (TCC)
The taxpayer was found to have acquired a 12-year old building, containing two vacant small offices and a third office being used by a practising...
Administrative Policy
13 July 2012 External T.I. 2012-0443281E5 F - DPA- véhicule dans le cadre d'un bien locatif
CRA indicated that there was no particular reason to consider that capital cost allowance (CCA) for a motor vehicle that is used by a taxpayer to...
22 March 2012 External T.I. 2011-0425571E5 F - Avantage imposable - maison habitée sans frais
Can a corporation claim capital cost allowance ("CCA") on a house it owns, but which is made available for habitation by an employee-shareholder...
23 January 2012 External T.I. 2011-0409671E5 F - Propriété superficiaire
Corporation A erected, at its expense and for exclusive use in its transport business, a detached garage on the land on which the principal...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Principal Residence - Paragraph (e) | land leased to corporation for business use not part of principal residence | 160 |
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) | benefit if building constructed at corporation’s expense for business purposes becomes shareholder’s property by accession | 154 |
| Tax Topics - General Concepts - Ownership | whether tenant had Quebec right of superficies to garage erected by it determined whether it was its property | 91 |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Depreciable Property | building erected by corporation on shareholder’s land not depreciable property unless shareholder renounces right of accession | 223 |
18 May 2011 External T.I. 2011-0392441E5 F - Outils - déduction pour amortissement
After finding that small tools that the taxpayer purchased at a unit cost of less than $200 to maintain the units in a rental building (one of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 12 - Paragraph (c) | small tools were Class 12 assets rather than currently deductible | 127 |
21 September 2010 Internal T.I. 2010-0377011I7 F - Dépenses de vêtements - travailleur indépendant
In finding that CCA could not be deducted by a self-employed welder following the acquisition of steel-toed work boots and fire-resistant...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(h) | no deduction to self-employed welder for work boots and fire-resistant clothing | 98 |
S3-F4-C1 - General Discussion of Capital Cost Allowance
Demolished building
1.56 [A] taxpayer might purchase real estate that includes a building and tear down the building relatively soon after the...
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...
| 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 Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(a) | no change of use when premises were vacated | 180 |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Disposition of Property | no disposition when premises were vacated (but not abandoned) | 254 |
1 August 2003 Internal T.I. 2003-0009697 F - Usufruit et amortissement
In 1990, an individual died and bequeathed the usufruct of an immovable to a friend. CCRA noted that, in the absence of the application of the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(3) | s. 248(3) generates CCA claim to deemed trust, whereas previously no CCA was available | 109 |
14 March 2003 External T.I. 2003-0002465 F - Usu-droit privé franc.- nu- prop. Canadien
The taxpayer acquired, by will, the bare ownership (under French law) of a French rental property, with the rental income therefrom going to her...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(a) | change of use to bare owner when usufruct over French rental property was extinguished | 95 |
21 January 2003 External T.I. 2001-0109445 F - Usufruit-droit privé français-nu-prop. Cdn.
At the time of the death in 1985 of the taxpayer’s father, the usufruct under French law of a rental property located in France vested in the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 70 - Subsection 70(5) | when usufruct created by will, legatee of bare ownership acquired it at FMV of bare ownership | 84 |
5 March 2002 Internal T.I. 2001-0102757 F - PERTE FINALE
In order to enlarge the parking lot on its existing rental property and improve the visibility of the existing buildings, the taxpayer acquired an...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Adjusted Cost Base | cost of moving rental building off land for subsequent sale, in order to construct parking lot and create more space for existing rental buildings, was addition to ACB of land | 161 |
Income Tax Regulation News, Release No. 3, 30 January, 1995 under "Use of a Partner's Assets by a Partnership"
Where a property is acquired by a partner for the purpose of making it available to the partnership to be used in carrying on the business of the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) | 70 | |
| Tax Topics - Income Tax Act - Section 97 - Subsection 97(1) | 36 |
Income Tax Regulation News, Release No. 3, 30 January 1995, under "Loss Utilization within a Corporate Group"
Whether the reasoning in Hickman Motors (93 DTC 5040, [1993] 1 CTC 36) applies to a particular loss-consolidation scheme "will depend on all of...
Rulings Directorate Discussion and Position Paper on Motion Picture Films and Video Tapes as Tax Shelters, Version 29/3/93 930501 (C.T.O. "Motion Picture Films C.C.A.")
Favourable income tax rulings will not be given where there is a probability that a partnership acquiring a film will not make an economic profit...
21 November 1990 Memorandum (Tax Window, Prelim. No. 2, p. 8, ¶1074)
A partner is not permitted to deduct any CCA on assets owned by the partner and used in the partnership business unless a fair market value rent...
81 CR - Q.23
Where a partnership uses assets of a partner, the partner is entitled to claim CCA provided that a fair market value rental is charged to the...
Paragraph 1102(1)(d)
See Also
Agence du revenu du Québec v. 7958501 Canada Inc., 2022 QCCA 314
A private company (“SherWeb”) transferred software, which it had developed and then used in its business, to a newly-formed sister company...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(e) | software that was not depreciable property to the transferor because it was written off as SR&ED was not subject to s. 13(7)(e) to the NAL transferee | 294 |
| 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 |
7958501 Canada Inc. v. Agence du revenu du Québec, 2020 QCCQ 2424, aff'd 2022 QCCA 315
A private company (“SherWeb”), which provided the use of software developed by it to paying subscribers, transferred its software and other IP...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(e) | software whose development was deducted under s. 37 could be stepped up on a related-party transfer notwithstanding s. 13(7)(e) | 476 |
| 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 |
Paragraph 1102(1)(e)
See Also
Roger Dubois Inc. v. The Queen, 2014 DTC 1094 [3167], 2013 TCC 409, briefly aff'd 2015 CAF 235
The taxpayer purchased violins and violin bows, which had been fabricated between 1705 and 1844, for purchase prices aggregating $1.4 million. It...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Interpretation/Definition Provisions | "deems" has several meanings | 110 |
| Tax Topics - Statutory Interpretation - Noscitur a Sociis | no implied similarity requirement | 158 |
Administrative Policy
18 June 2015 External T.I. 2015-0580391E5 F - Achat et location d'oeuvres d'art
Can a taxpayer claim capital cost allowance respecting amounts paid for the acquisition of works of art for the interior decoration of offices or...
8 October 2010 Roundtable, 2010-0373311C6 F - Oeuvres d'artistes étrangers
A public corporation acquires such works of art from foreign artists, for example, paintings that are used to decorate the boardroom in a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Listed Personal Property | art work in corporate boardroom is not personal use property, perhaps also where decorates office | 197 |
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) | art used to decorate the office of a shareholder-employee generally does not generate a s. 15(1) benefit | 92 |
12 October 1994 External T.I. 9420045 - CANADIAN'S ARTOWRK
Property that is jointly created by a Canadian and a non-Canadian artist will not qualify for the exception for property created by an individual...
Regulation 1102(2)
See Also
Cheshire Cavity Storage 1 Ltd & Anor v Commissioners for Her Majesty's Revenue and Customs, [2022] EWCA Civ 305
The taxpayer, which was engaged in the development, construction, and operation of gas storage facilities in the UK, was found not to be entitled...
Toronto (City) v Municipal Property Assessment Corporation Region 09, 2010 CanLII 151281 (ON ARB)
The appellants take the position that the surface portion of their lands in the City of Toronto, which were used for surface parking and the...
Administrative Policy
7 October 2016 APFF Financial Strategies and Instruments Roundtable Q. 4, 2016-0651791C6 F - Choix 45(2) et (3) - immeuble à logements
Before indicating that, if a duplex property is used more than 50% for rental use, so that it is not personal-use property, a capital loss...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 45 - Subsection 45(3) | invalidity of s. 45(3) elections on duplex units applied only for changes of use after February 21, 2012 | 185 |
| Tax Topics - Income Tax Act - Section 54 - Personal-Use Property | land underlying duplex used 40% personally is not personal-use property | 233 |
| Tax Topics - Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) - Subparagraph 40(2)(g)(iii) | capital loss recognition on land underlying duplex used 40% personally | 78 |
2 May 2002 Internal T.I. 2002-0122607 F - BIENS A USAGE PERSONNEL
On the disposition by an individual of a cottage which is a personal-use property (“PUP”) but not his principal residence, he realizes a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property | where Reg. 1102(2) does not apply, land and building are a single property generating a single gain | 158 |
Subsection 1102(4) - Improvements or Alterations to Leased Properties
Administrative Policy
18 May 2022 Internal T.I. 2018-0788761I7 F - Amortissement – Travaux sur un bien loué et F&T
The taxpayer, which subleased premises containing “Shells” consisting essentially of foundations, walls and roofs, installed wall and floor...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(5) - Paragraph 1102(5)(a) - Subparagraph 1102(5)(a)(iii) | rendering of an empty shell suitable for manufacturing constituted substantially changing its nature | 288 |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 - Paragraph 8(b) | property does not satisfy the “solely” test in Class 8(b) where it was necessary for the proper functioning of the building | 265 |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A | cost of installing property part of that property’s cost | 357 |
| Tax Topics - General Concepts - Ownership | leasehold improvements are assimilated to the landlord’s property unless the lease specifies otherwise | 101 |
| Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(5) | building shell was a building or structure/ addition refers to extension of structure | 294 |
IT-464R "Capital Cost Allowance - Leasehold Interest"
Subsection 1102(5) - Buildings on Leased Properties
Administrative Policy
18 May 2022 Internal T.I. 2018-0788761I7 F - Amortissement – Travaux sur un bien loué et F&T
The taxpayer, which subleased premises containing “Shells” consisting essentially of foundations, walls and roofs, installed wall and floor...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(5) - Paragraph 1102(5)(a) - Subparagraph 1102(5)(a)(iii) | rendering of an empty shell suitable for manufacturing constituted substantially changing its nature | 288 |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 - Paragraph 8(b) | property does not satisfy the “solely” test in Class 8(b) where it was necessary for the proper functioning of the building | 265 |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A | cost of installing property part of that property’s cost | 357 |
| Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(4) | to be improvements or alterations to leasehold interest, property acquisitions must be assimilated to landlord’s property | 225 |
| Tax Topics - General Concepts - Ownership | leasehold improvements are assimilated to the landlord’s property unless the lease specifies otherwise | 101 |
7 August 2014 External T.I. 2014-0528841E5 F - Changement à une résidence principale
A taxpayer renovates the basement of his home by adding a separate door, permitting access from the outside, in order to establish offices there...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(c) | addition of a door to an exterior wall could be considered a structural change triggering a change of use | 136 |
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) | taxable benefit if renovations paid for by tenant-corporation increase the FMV of property to owner-shareholder | 96 |
2015 Ruling 2014-0552291R3 - Paragraph 1102(5)(a) of the Regulations
Funding and erection of Apartment Base.
Two arm's length corporations (ACo and ALP PartnerCo) and a GP jointly owned by them (RealLPGPCo) jointly...
20 July 2001 External T.I. 2001-0087205 F - BAIL TRAITEMENT DU PRENEUR
After discussing its general position that a lease is a lease and a sale a sale, CCRA stated:
Where a lessee, having entered into an emphyteutic...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Substance | distinction between a sale and a lease is based on the legal terms of the arrangement | 199 |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Proceeds of Disposition - Paragraph (a) | distinction between a sale and a lease is based on whether legally there is a sale or lease | 180 |
17 August 1994 External T.I. 9415235 - CAPITAL COST ALLOWANCE
Because Regulation 1102(5) is considered to apply to any building referred to in Schedule II which is either a building or a structure, and is not...
Revenue Canada Round Table CTF-1992 Conference, Q. 70 No. 922851 (Not Included in Final Report)
Regulation 1102(5) is restricted to references made in Schedule II to a building or other structure and does not deem the leasehold interest to be...
IT-464R "Capital Cost Allowance - Leasehold Interest"
Exclusions from capital cost of leasehold interest
6. Certain amounts paid by a tenant in respect of a lease are not considered to form part of...
Paragraph 1102(5)(a)
Subparagraph 1102(5)(a)(iii)
Administrative Policy
18 May 2022 Internal T.I. 2018-0788761I7 F - Amortissement – Travaux sur un bien loué et F&T
The taxpayer, which subleased premises containing “Shells” consisting essentially of foundations, walls and roofs, installed wall and floor...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 - Paragraph 8(b) | property does not satisfy the “solely” test in Class 8(b) where it was necessary for the proper functioning of the building | 265 |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A | cost of installing property part of that property’s cost | 357 |
| Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(4) | to be improvements or alterations to leasehold interest, property acquisitions must be assimilated to landlord’s property | 225 |
| Tax Topics - General Concepts - Ownership | leasehold improvements are assimilated to the landlord’s property unless the lease specifies otherwise | 101 |
| Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(5) | building shell was a building or structure/ addition refers to extension of structure | 294 |
Subsection 1102(14) - Property Acquired by Transfer, Amalgamation or Winding-Up
Cases
Hickman Motors Limited, Appellant v. Her Majesty the Queen, Respondent, 97 DTC 5363, [1997] 2 S.C.R. 336, [1998] 1 CTC 213
Regulation 1102(14) deemed the taxpayer to have acquired assets for the purpose of gaining or producing income because it received those assets as...
Administrative Policy
2019 Ruling 2018-0772921R3 - Loss utilization
Aco, and its subsidiary Bco, have available capital losses that they wish to use in stepping up the undepreciated capital cost of trademarks...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(e) - Subparagraph 13(7)(e)(ii) | net capital losses used to step up UCC of trademarks | 354 |
| 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 |
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(a) | property remaining idle after deemed acquisition as depreciable property not a change of use | 176 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) | deemed depreciable property in fact not used for income-producing purpose | 199 |
S4-F7-C1 - Amalgamations of Canadian Corporations
1.33 …[W]here a predecessor corporation was not dealing at arm's length (otherwise than because of a right referred to in paragraph 251(5)(b))...
10 April 1997 T.I. 970422
A building was transferred to a company in a non-arm's length transaction (so that Regulation 1102(14)(d) applied) and the company thereupon...
90 C.R. - Q38
Where s. 251(3.1) deems Amalco and the predecessors to be related persons, s. 1102(14) will deem the property acquired by Amalco from the...
Subsection 1102(23)
Administrative Policy
13 March 2017 External T.I. 2016-0626641E5 F - Election - Subsection 1101(5b.1) Reg.
CRA considered that if there are two separate additions to a pre-2007 non-residential building, an election under Reg. 1101(5b.1) must be made on...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 1101 - Subsection 1101(5b.1) | only one Reg. 1101(5b.1) election is required where work on an addition to a non-residential building extends over more than one year | 338 |