Regulation 1103

Subsection 1103(1)

Administrative Policy

4 December 2018 TEI Roundtable Q. 1, 2018-0782341C6 - Regulation 1103(1)

Reg. 1103(1) election does not affect subsequent years’ acquisitions

Folio S3-F4-C1, para. 1.132 states:

[U[nder [Reg.] 1103(1) …, a taxpayer may elect to transfer all properties otherwise included in Classes 2 through 12 (excluding Class 10.1) to Class 1 provided that all such properties were acquired for the purpose of gaining or producing income from the same business. The election affects all properties on hand at the commencement of the tax year for which the election is made, as well as any such property acquired during that year.

In a technical interpretation letter dated January 8, 1980, CRA added the following sentence to this statement:

The election does not affect properties acquired after the end of that year as referred to in your letter but, of course, they could be subject to a later election.

CRA confirmed that this statement continued to be its position.

Subsection 1103(2d)

Administrative Policy

14 November 89 T.I. (April 90 Access Letter, ¶1168)

The rules relating to transfers of depreciable property contained in s. 13(5) govern a transfer pursuant to an election under Regulation 1103(2d).


Hayos, "Regulation 1103(1) - The Sometimes Forgotten Election", Witterick on Corporate Acquisitions, Vol. 1, No. 1, p. 23.