Cases
Motter v. Agence du revenu du Québec, 2021 QCCA 72
The taxpayer, who carried on a business of constructing and renting commercial real estate, entered into a lease agreement with Téléglobe...
Hare v. Canada, 2013 DTC 5066 [at 5868], 2013 FCA 80, aff'g 2011 DTC 1215 [at 1262], 2011 TCC 294 (Informal Procedure)
Renovation costs incurred on a residential rental property, including new doors, windows and siding, were of a capital nature given that they were...
Mbénar v. Canada, 2012 DTC 5137 [at 7290], 2012 FCA 180
The trial judge was correct in finding that alleged repair expenses were capital expenditures, which the Court characterized as a "complete...
Rainbow Pipe Line Co. Ltd. v. Canada, 2002 DTC 7124, 2002 FCA 259
The Court affirmed the decision of Morgan T.C.J. that the cost of replacing 44 km of the taxpayer's 781 km light crude oil pipeline should be...
Bowland v. The Queen, 2001 DTC 5395 (FCA), aff'd 2001 DTC 5395, 2001 FCA 160
The taxpayer claimed a deduction of $63,682 for repairs to a rental building which, prior to a fire, had a value of $75,000. The Court confirmed...
65302 British Columbia Ltd. v. Canada, 99 DTC 5799, [1999] 3 S.C.R. 804
Over-quoted levies paid by the taxpayer to the British Columbia Egg Marketing Board as the result of its deliberate over-production were paid on...
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| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | fines for conduct engaged in for an income-producing purpose | 270 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Public Policy | 71 | |
| Tax Topics - Statutory Interpretation - Drafting Style | avoid policy conjectures in detailed and complex statute | 126 |
| Tax Topics - Statutory Interpretation - Ease of Administration | avoidance of undue burden on taxpayer | 74 |
| Tax Topics - Statutory Interpretation - Resolving Ambiguity | 125 |
Gladstone Investment Corp. v. The Queen, [1999] F.T.R. 33087, 99 DTC 5207 FCA
The taxpayer paid $480,900 to the City of Montreal in connection with a land exchange with the City and relocating a city street further to the...
Canadian Reynolds Metals Co. Ltd. v. The Queen, 94 DTC 6340, [1994] 2 CTC 83 (FCTD), aff'd 96 DTC 6312 (FCA)
The taxpayer periodically relined the steel containers which it used to produce primary aluminum through an electrolysis process. Historically,...
Central Amusement Co. Ltd. v. The Queen, 92 DTC 6225, [1992] 1 CTC 218 (FCTD)
The taxpayer, which was in the business of leasing, owning and servicing video-game machines was entitled to deduct in its 1983 taxation year the...
Greenway v. The Queen, 91 DTC 5251, [1991] 1 CTC 445 (FCTD)
The taxpayer along with other investors did not acquire the beneficial ownership of a MURB at the time that a nominee corporation entered into an...
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| Tax Topics - General Concepts - Ownership | conditions precedent not yet fulfilled | 58 |
Graves v. The Queen, 90 DTC 6300 (FCTD)
In finding that costs incurred by the taxpayers, who in partnership carried on a business of distributing Amway products in Canada, in connection...
The Queen v. Browning Harvey Ltd., 90 DTC 6105, [1990] 1 CTC 161 (FCTD)
The taxpayer, which was a manufacturer and distributor of soft drinks, sold coolers to shopkeepers for $2, payable 1/2 at the date of the...
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| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Disposition of Property | 150 |
MHL Holdings Ltd. v. The Queen, 88 DTC 6292, [1988] 2 CTC 42 (FCTD)
A developer paid $712,000 to the City of Calgary in lieu of the construction of 89 parking stalls which otherwise would have been required by the...
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| Tax Topics - General Concepts - Accounting Principles | 79 |
Edmonton Plaza Hotel (1980) Ltd. v. The Queen, 87 DTC 5371, [1987] 2 CTC 153 (FCTD)
In order to obtain a development permit to add a 72-room extension to its hotel, the taxpayer committed itself to either construct 27 additional...
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| Tax Topics - General Concepts - Accounting Principles | 54 | |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A | costs incurred to obtain building permit part of building cost | 108 |
Gold Bar Developments Ltd. v. The Queen, 87 DTC 5152, [1987] 1 CTC 262 (FCTD)
Following the premature break-down of the brick veneer on an apartment building due to faulty workmanship when the building had been constructed...
The Queen v. Moore, 86 DTC 6325, [1986] 2 CTC 22 (FCTD), aff'd 87 DTC 5215 (FCA)
Property was leased for 60 years to a corporation ("Woodbine") for $180,000 payable on December 31, 1976 and the balance of the consideration of...
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| Tax Topics - Statutory Interpretation - Resolving Ambiguity | 37 |
Johns-Manville Canada v. The Queen, 85 DTC 5373, [1985] 2 CTC 111, [1985] 2 S.C.R. 46
The taxpayer mining company purchased, on an almost annual basis, lands surrounding its open pit mine in order that the perimeter of the sloping...
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| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 31 | 28 | |
| Tax Topics - Statutory Interpretation - Resolving Ambiguity | presumption of relief for business expenditures | 136 |
Cummings v. The Queen, 81 DTC 5207, [1981] CTC 285 (FCA)
"Lease pick-up" payments which the taxpayer agreed to pay to prospective tenants of a nearly vacant office tower in downtown Montreal were...
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| Tax Topics - General Concepts - Accounting Principles | 94 | |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(e) | 93 |
Oxford Shopping Centres Ltd. v. The Queen, 79 DTC 5458, [1980] CTC 7, aff'd 81 DTC 5065, [1981] CTC 128 (FCA)
A large lump sum payment was made by the taxpayer to the City of Calgary in consideration of (i) the City improving the system of roads around the...
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| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Marketing Expenditures | 138 | |
| Tax Topics - Income Tax Act - Section 9 - Timing | 128 |
Bankmont Realty Co. Ltd. v. National Capital Commission (1980), 19 L.C.R. 97 (FCA)
Expenses incurred in moving premises used as banking offices, including legal and appraisal fees, moving expenses and rent during the period...
Shabro Investments Ltd. v. The Queen, 79 DTC 5104, [1979] CTC 125 (FCA)
The removal of the damaged floor of a rental building and its replacement by a floor supported by steel piles effected a substantial improvement...
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| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A | costs of cleaning up a site | 20 |
Tobias v. The Queen, 78 DTC 6028, [1978] CTC 113 (FCTD)
In finding that expenditures totalling approximately $106,000 which the taxpayer made over an 8 year period in an unsuccessful search for buried...
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|---|---|---|
| Tax Topics - General Concepts - Onus | 42 | |
| Tax Topics - General Concepts - Personality | 48 | |
| Tax Topics - General Concepts - Separate Existence | 51 | |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Reasonable Expectation of Profit | 20 | |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Timing | 57 | |
| Tax Topics - Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit | 20 | |
| Tax Topics - Income Tax Act - Section 67 | high pay-off if unlikely prospect of success was achieved justified the expenditure | 91 |
The Queen v. Canadian Pacific Ltd., 77 DTC 5383, [1977] CTC 606 (FCA)
Canadian Pacific built a railway siding for a customer at the customer's expense and then later purchased the siding for $1. It was held that the...
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| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A | 60 | |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Income Bond | 16 |
R. v. H. Griffiths Co., 76 DTC 6261, [1976] CTC 454, [1975] C.T.C. 2120 (FCTD)
The taxpayer ("Griffiths") incorporated a subsidiary, whose purpose was to supply sheet metal to Griffiths' mechanical contracting business, then...
MNR v. Canadian Glassine Co. Ltd., 76 DTC 6083, [1976] CTC 141 (FCA)
The taxpayer, which was incorporated to manufacture grease-proof paper, paid for a portion of the costs incurred by a slush pulp and steam company...
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| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 14 | 83 |
Denison Mines Ltd. v. Minister of National Revenue, 74 DTC 6525, [1974] CTC 737, [1976] 1 S.C.R. 245
A mining company drove passageways into an ore body which were used to extract ore from the balance of the ore body. Although the passageways...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A | 99 | |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(28) | no double deduction | 38 |
Aluminium Co. of Canada Ltd. v. The Queen, 74 DTC 6408, [1974] CTC 471 (FCTD)
A payment made by the taxpayer to its Jamaican subsidiary as a result of a threat of the Jamaican authorities to reassess the subsidiary on the...
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| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Incurring of Expense | voluntary increase to payments for foreign tax purposes were deductible | 51 |
Asamera Oil (Indonesia) Ltd. v. The Queen, 73 DTC 5274, [1973] CTC 305 (FCTD)
The taxpayer's parent agreed to provide technical and financial assistance to an Indonesian oil company ("Permina") in return for the right to...
Macmillan Bloedel (Alberni) Ltd. v. MNR, 73 DTC 5264, [1973] CTC 295 (FCTD)
The taxpayer was unsuccessful in deducting the portion of the cost of new trucks applicable to tires (which had a useful life of slightly over 12...
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| Tax Topics - Income Tax Regulations - Regulation 700 - Subsection 700(1) - Paragraph 700(1)(d) | 72 |
Elias Rogers Co Ltd. v. MNR, 73 DTC 5030, [1972] CTC 601 (FCTD)
The taxpayer was entitled to deduct the costs of installing water heaters which it was leasing to its customers, notwithstanding that such costs...
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| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A | 83 |
Canada Steamship Lines Ltd. v. MNR, 66 DTC 5205, [1966] CTC 255 (Ex Ct)
The expenses of replacing the floors and walls of cargo-carrying holds in ships which had been worn out as a result of loading, carrying and...
Minister of National Revenue v. Haddon Hall Realty Inc., 62 DTC 1001, [1961] CTC 509, [1962] S.C.R. 109
In finding that expenses incurred by the taxpayer in replacing stoves, refrigerators and window blinds which had become worn out, obsolete or...
MNR v. Lumor Interests Ltd., 60 DTC 1001 (Ex Ct)
Costs incurred by a taxpayer, who owned and operated an office building, in replacing an elevator and rebuilding the elevator shaft represented...
MNR v. Vancouver Tug Boat Co. Ltd., 57 DTC 1126, [1957] CTC 178 (Ex Ct)
In finding that the cost of replacing an engine in a tug was a capital expenditure, Thurlow J. stated (at p. 1131) that "there is no continuous...
Thompson Construction (Chemong) Ltd. v. MNR, 57 DTC 1114, [1957] CTC 155, [1957] CTC 154 (Ex Ct)
In finding that the cost of a replacement engine for a power shovel was a capital expenditure, Cameron J. stated (at p. 1118) that he was...
Royal Trust Co. v. MNR, 57 DTC 1055, [1957] CTC 28 (Ex. Ct.)
The taxpayer paid both the admission fees and the annual membership dues of social clubs of which its officers were members. Thorson P. rejected a...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | 62 | |
| Tax Topics - Income Tax Act - Section 9 - Computation of Profit | 154 |
See Also
Parent v. Agence du revenu du Québec, 2023 QCCQ 10440
In 2006, the taxpayer acquired a rental property in run-down condition for $275,000 and then, between 2008 and 2010 incurred $290,074 in...
Mussalli v Commissioner of Taxation, [2021] FCAFC 71
Two Australian trusts that were to be the franchisees for seven McDonald’s restaurants agreed, at the same time as they agreed to enter into...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Contract Purchases or Prepayments | rent prepayments made on the acquisition of leased franchised premises were capital expenditures | 259 |
DiCaita v. The Queen, 2021 TCC 5 (Informal Procedure)
A unit, in a 56-unit Vancouver condo complex, which the taxpayer had been renting-out for many years, was vacated by the current tenant and ceased...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | expenses of flight, at the conclusion of Las Vegas vacation followed by attending at a rental property in Phoenix, from Phoenix back home were deductible | 284 |
| Tax Topics - Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit | rental unit was a source of income even when not rentable due to on-going renovations | 77 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(12) | significant time must be spent in home office to justify significant deduction | 166 |
Mussalli v Commissioner of Taxation, [2020] FCA 544, aff'd [2021] FCAFC 71
Two Australian trusts that were to be the franchisees for seven McDonald’s restaurants agreed, at the same time as they agreed to enter into...
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| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Contract Purchases or Prepayments | non-refundable lump-sum “rent prepayment” to secure a permanent reduction in percentage rent was a capital expenditure | 324 |
Les Développements Iberville Ltée v. Agence du Revenu du Québec, 2018 QCCA 1886 (Quebec Court of Appeal)
The taxpayer entered into lease agreements with two retailers, Pier 1 lmports and Bureau en Gros providing for the construction of buildings that...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | abuse to use rollover provisions to avoid rather than defer tax | 683 |
| Tax Topics - Income Tax Act - Section 85 - Subsection 85(1) | abuse of Quebec equivalents of ss. 85(1) and 97(2) to avoid (rather than defer) tax | 420 |
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Real Estate | property bifurcated between capital and income portion on acquisition | 98 |
| Tax Topics - Income Tax Regulations - Regulation 402 - Subsection 402(6) | purpose of inter-provincial allocation rules is for 109% of income to be allocated and taxed | 558 |
| Tax Topics - Income Tax Act - Section 249.1 - Subsection 249.1(1) | no policy of permitting differing Quebec and federal year ends | 196 |
Motter v. Agence du revenu du Québec, 2018 QCCQ 3483, aff'd 2021 QCCA 72
The taxpayer, who carried on a business of constructing and renting commercial real estate, entered into a lease agreement with Téléglobe...
Aon Inc. v. The Queen, 2017 TCC 166
The taxpayer (“Aon”) built a large apartment complex (“Citi Centre”) in Peterborough in 1973 and 1974 and subsequently rented and operated...
Trustpower Ltd. v. Commissioner of Inland Revenue, [2016] NZSC 91
The taxpayer (“Trustpower”), which was a New Zealand company engaged in the generation and sale of electricity, incurred costs totalling...
Jennings v. The Queen, 2015 DTC 1117 [at 743], 2015 TCC 96 (Informal Procedure)
In 1987, the taxpayers acquired a three-unit rental property which, they were informed in 1993, was not zoned to permit three rental units. They...
Drago v. The Queen, 2013 DTC 1226 [at 1245], 2013 TCC 257 (Informal Procedure)
In denying current deductions for $30,939 of the $36,939 costs of renovating two rental suites, Jorré J stated (at para. 23):
Although the...
Mbénar v. The Queen, 2011 DTC 1230 [at 1336], 2011 TCC 246 (Informal Procedure)
Considering repair expenses on a rental property, Favreau J. stated (at paras. 12-13):
In fact, it was a complete rehabilitation of the building...
Norton v. The Queen, 2010 DTC 1068 [at 2863], 2010 TCC 62 (Informal Procedure)
The taxpayers were partners in a fishing business. Webb J. found that the taxpayers' costs to acquire new lobster traps and nets were a repair...
Martinello v. The Queen, 2010 DTC 1300 [at 4076], 2010 TCC 432 (Informal Procedure)
The taxpayer rented out several houses. One of them was severely damaged by a storm - it was lifted off its foundation, the mean floor beam...
Heron Bay Investments Ltd. v. The Queen, 2009 DTC 1606, 2009 DTC 1288
The taxpayer incurred an expense of $89,799 for the rezoning of a parking lot so that the construction of a condominium building would be...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 112 - Subsection 112(2.1) | 102 | |
| Tax Topics - Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(a) | 72 |
Daoust v. The Queen, 2008 DTC 4614, 2008 TCC 316 (Informal Procedure)
The complete replacement of old walls of a purchased triplex with new ones gave rise to capital expenditures, as did the replacement of fuse...
Bishop v. The Queen, 2009 DTC 1213, 2009 TCC 323 (Informal Procedure)
In finding that expenditures incurred in three taxation years of approximately $27,000, $40,000 and $46,000 to renovate a rental property that was...
Lewin v. The Queen, 2009 DTC 1, 2008 TCC 618 (Informal Procedure)
An expenditure to replace a deck on a rental residential property of the taxpayer was fully deductible notwithstanding that there were some...
Labrèche c. La Reine, 2007 DTC 1511, 2007 TCC 413 (Informal Procedure)
Expenditures incurred by the taxpayers in redoing the lower unit of a duplex including pouring a new foundation in cement only (whereas the...
Di Fruscia c. La Reine, 2007 DTC 1160, 2007 TCC 310 (Informal Procedure)
Costs of repairing the garage floor and replacing brick on the exterior wall of a building were currently deductible expenditures, whereas...
Gruber v. The Queen, 2007 DTC 1136, 2007 TCC 340 (Informal Procedure)
Expenditures on a rental condominium apartment that included such items as kitchenware, small appliances, decorations, sheets, and cookware were...
ATCO Electric Ltd. v. The Queen, 2007 DTC 974, 2007 TCC 243
$622,990 which the taxpayer spent in the taxation year in question in replacing 709 of its smaller transformers was a fully deductible expense...
| Locations of other summaries | Wordcount | |
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| Tax Topics - Income Tax Regulations - Regulation 1104 - Subsection 1104(5) - Paragraph 1104(5)(a) | 83 | |
| Tax Topics - Income Tax Regulations - Regulation 1204 - Subsection 1204(1) | 83 |
O'Rourke Marketing Corporation Ltd. v. The Queen, 2006 DTC 2743, 2006 TCC 5
Work on a property that the taxpayer had purchased from a shareholder with a view to making it suitable for use as its offices, including...
Gabriel v. The Queen, 2006 DTC 2292, 2005 TCC 799
Various expenditures incurred by the taxpayers in repairing or modifying a building they had purchased for use in providing storage units to the...
Pantorama Industries Inc. v. The Queen, 2004 DTC 2536, 2004 TCC 256
Monthly fees that the taxpayer (a public company operating several chains of clothing stores in Canada) paid to an independent lease company for...
Maysky v. The Queen, 2003 DTC 991, 2003 TCC 387 (Informal Procedure)
Maintenance and repairs expenses incurred with respect to a house of the taxpayer were on capital account given that there was no expectation of...
L.d.g. 2000 Inc. v. The Queen, 2003 DTC 827 (TCC)
The taxpayer purchased for $285,000 a building with a leaky roof. After evaluating the possibility of repairing the old roof, the taxpayer...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 256 - Subsection 256(5.1) | 147 |
Kelowna Flightcraft Air Charter Ltd. v. The Queen, 2003 DTC 611, 2003 TCC 347
The installation of a system on aircraft of the taxpayer in order for them to comply with new regulations that required the aircraft to be quieter...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 67.1 - Subsection 67.1(2) - Paragraph 67.1(2)(c) | 70 |
Suncor Energy Inc. v. The Queen, 2001 DTC 660 (TCC), aff'd 2002 DTC 7395, 2002 FCA 350
The taxpayer used the overburden and tailings produced or extracted by it in the process of extracting bitumen from oil sands deposits to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 10 | 300-ft dykes might not be "structures" | 92 |
CIR v. New Zealand Forest Research Institute, [2000] BTC 245 (PC)
The formula for ascertaining the cash consideration paid by the taxpayer on the purchase of the assets of a business involved calculating the...
Auckland Gas Co. Ltd. v. CIR (2000), 19 NZTC 15702, [2000] 3 NZLR 6 (PC)
The taxpayer, which distributed natural gas through a low pressure network of underground cast iron pipes ("mains") and smaller steel spurs...
Marklib Investment II-A Ltd. v. The Queen, 2000 DTC 1413 (TCC)
Before finding that the corporate taxpayer was entitled to currently deduct substantial expenditures incurred by it in restoring various apartment...
Rainbow Pipeline Co., Ltd. v. The Queen, 99 DTC 1081 (TCC)
The cost incurred by the taxpayer in replacing approximated 5.7% of the total length of its main trunk line was a capital expenditure. (Mogan TCJ....
Bowland v. R., 99 DTC 998, [1999] 4 CTC 2530 (TCC)
In finding that the costs of substantial repairs incurred to remedy extensive fire damage were capital expenditures, Hamlyn TCJ. stated (at p....
Splend'or Industries Ltd. v. The Queen, 99 DTC 560 (TCC)
The taxpayer was unable to deduct the cost of replacing the roof of premises that were rented to it because such repair was the responsibility of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | 32 |
F.A.S. Seafood Producers Ltd. v. The Queen, 98 DTC 2034, [1998] 4 CTC 2794 (TCC)
$150,000 paid for the acquisition of fishing licences by a company in the business of catching and selling fish was a capital expenditure. First,...
Sergerie v. MNR, 95 DTC 243 (TCC)
An expenditure of $4,360 made by the taxpayer to replace the motor of his "skidder" was found to be fully deductible given that the cost of the...
Gartry v. The Queen, 94 DTC 1947, [1994] 2 CTC 2021 (TCC)
Before finding that various expenditures made by the taxpayer in respect of a vessel, before the vessel sank and before the taxpayer acquired...
Canaport Ltd. v. The Queen, 93 DTC 1226, [1993] 2 CTC 2830 (TCC)
The $4,000,000 costs of installing a fiberglas liner in a subsea crude oil pipeline which had suffered unanticipated substantial corrosion from...
Harwill Investment Corp. v. The Queen, 93 DTC 247, [1993] 1 CTC 2424 (TCC)
The taxpayer, which was a co-owner of a shopping plaza, arranged for the parking facilities to be expanded by having the City of Montreal close...
Earl v. The Queen, 93 DTC 65, [1993] 1 CTC 2081 (TCC)
In finding that the cost of replacing a leaking flat roof by a pitched roof was not deductible, Rowe D.J. stated (p. 68):
"The new pitched roof...
McLaughlin v. MNR, 92 DTC 1030 (TCC)
The taxpayer spent $60,836 on improving a dilapidated house which he had purchased for rental purposes. The deduction by the taxpayer of $19,420...
Boucher v. MNR, 91 DTC 1435 (TCC)
A consultation fee of $20,000 which the taxpayer paid for several real property studies on various income-producing properties (three of which the...
Redmond v. MNR, 91 DTC 1128 (TCC)
The deductibility of soft costs incurred by the taxpayer in connection with the acquisition of condominium units from a developer was not affected...
David Dyer v. Minister of National Revenue, 91 DTC 630, [1991] 1 CTC 2505 (TCC)
The cost of various repairs to a house such as new floor coverings, repairs to windows and window boxes, refacing fireplaces, replacing fire...
Baggs v. MNR, 90 DTC 1296, [1990] 1 CTC 2391 (TCC)
A winter storm blew off the asphalt layer on the taxpayer's apartment building. The cost of replacing the asphalt and repairing consequential...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(3.1) | expenses related to repair period which interrupted expansion program | 115 |
Le sous-Ministre du revenu du Quebec c. Denise Goyer, 1987 538 (QC CA)
summarized in Earl v. The Queen, 93 DTC 65 (TCC)
Expenditures to completely replace the wooden flooring to balconies in a duplex which had rotted...
Carver v. Duncan; Bosanquet v. Allen, [1985] BTC 248 (HL)
"[E]xpenditure incurred for the benefit of the whole estate is a capital expense." Insurance policy premiums were paid "for the benefit of the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 108 - Subsection 108(3) | 52 |
Jeffs v. Ringtons Ltd., [1985] BTC 585 (HCJ.)
Regular contributions that were made by the taxpayer of 5% of its annual profits to a trustee with a view to building up a trust fund that would...
Pitt v. Castle Hill Warehousing Co. Ltd. (1974), 49 TC 638 (Ch. D.)
In order to provide an alternate means of access by its customers to its warehouses, the taxpayer (which carried on the trade of providing...
William P. Lawrie v. Commissioners of Inland Revenue (1952), 34 TC 20 (C.S. (1st. Div.))
After finding that an expenditure made by the taxpayer in lengthening and heightening a building and constructing a new roof represented a capital...
C.I.R. v. Adam (1928), 14 TC 34 (C.S. (1st. Div.))
In finding that £3,200 paid by the taxpayer (a carting contractor) in half-yearly instalments over an eight-year period for the right to deposit...
C.I.R. v. Granite City Steamship Co., Ltd. (1927), 13 TC 1 (C.S. (1st. Div.))
The taxpayer owned one ship only, which was seized by the Germans in 1914 and returned in 1918 in a condition which required extensive repairs. In...
British Insulated and Halsby Cables, Ltd. v. Atherton, [1926] A.C. 205 (HL)
In finding that a lump sum paid by the taxpayer to establish a pension fund for the benefit of its employees was a non-deductible capital...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | 150 |
Robert Addie and Sons' Collieries, Ltd. v. Commissioners of Inland Revenue (1924), 8 TC 676 (Ct. Ses. (1st Div.))
The terms of the underground lease entered into by a coal mining company required it to restore all grounds damaged by the taxpayer on the...
Ounsworth v. Vickers, Ltd. (1915), 6 TC 671 (K.B.D.)
Because the Harbour Authority had been delinquent in doing any dredging work over a 15-year period, the channel to the taxpayer's ship-building...
Administrative Policy
14 March 2024 External T.I. 2015-0596761E5 F - Traitement fiscal
Regarding the deductibility of an expenditure incurred for the anti-theft marking of an automobile used in carrying on a business (entailing...
| Locations of other summaries | Wordcount | |
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| Tax Topics - Income Tax Act - Section 18 - Subsection 18(9) | practice is not to apply s. 18(9) where the adjustments would be minimal | 139 |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(k) - A - Subparagraph A(iv) | mandatory requirement for employee notification to employer by end of year | 51 |
2 November 2023 APFF Roundtable Q. 7, 2022-0942171C6 F - Indemnité payée pour libérer temporairement un logement locatif
An individual owning a duplex with one unit occupied personally and the other rented out by him as a source of income, undertakes major work on...
S3-F4-C1 - General Discussion of Capital Cost Allowance
Incidental capital expenditure
1.3 … Where only a minor part of the expenditure is of a capital nature, the CRA's practice is to treat the whole...
S2-F1-C1 - Health and Welfare Trusts
Fund surplus1.21 Employer contributions to a health and welfare trust must not exceed the amount required to provide health and welfare benefits...
23 December 2014 Internal T.I. 2014-0535921I7 F - Commission d'agent de location
In finding that commissions paid by a trust owning rental buildings to leasing agents were currently deductible rather than being additions to...
18 December 2013 External T.I. 2013-0479421E5 F - Section 30 and Cranberry Farm
The cost of cranberry plants (which can live for 100 years) acquired in constructing and establishing a cranberry farm should be capitalized as...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 30 | costs of clearing, levelling and draining lands, but not of constructing basins, for a cranberry farm are currently deductible | 136 |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 17 - Paragraph 17(c) | costs of constructing cranberry farm basins included in Class 17 | 79 |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 6 | costs of constructing irrigation pond included | 33 |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 | irrigation system included, drainage costs deductible under s. 30 | 79 |
26 November 2012 External T.I. 2012-0432831E5 F - Dépenses - Immeuble locatif
The taxpayer undertook several major repairs on a rental building. After referencing the criteria in IT-128R, para. 4, CRA stated:
[T]o the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) | interest on mortgage on personal residence deductible if proceeds used to acquire rental property (until change in use) | 137 |
20 March 2012 External T.I. 2011-0424461E5 F - Déduction d'une rétribution à un agent immobilier
A taxpayer who owns two properties that allow the earning of rental income, and pays a real estate agent commissions (based on a percentage of the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Timing | commissions paid for leasing-up a new building generally are fully and currently deductible | 181 |
7 October 2011 Roundtable, 2011-0411971C6 F - Appraisal Fees Deductibility
Are appraisal fees incurred for revaluing capital property, in order to prepare annual financial statements in accordance with IFRS, deductible as...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(n) | appraisal fees for valuing capital property for the purpose of its acquisition or disposition are an ACB addition | 71 |
11 February 2011 External T.I. 2010-0377171E5 F - Dépenses engagées à l'égard d'un immeuble locatif
The correspondent will purchase an income property, renovate the two existing housing units, and add a third unit in the basement if the necessary...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Real Estate | purchase of rental building with intention to resell within a few years generally on income account | 196 |
7 January 2011 Internal T.I. 2010-0382411I7 F - Rénovation - dépenses courantes ou en capital
The taxpayers renovated their rental building to change from a flat to pitched roof. However, while the roof was uncovered, a heavy downpour...
12 October 2010 Internal T.I. 2010-0355761I7 F - PCMC - Dépense courante ou en capital
Is whether an expenditure on a "Canadian film or video production” ("CFVP") is a current expense, or a capital expenditure on depreciable...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 1106 - Subsection 1106(1) - Excluded Production - Paragraph (b) - Subparagraph (b)(i) | dealing with a currents topic does not render a program a news program | 47 |
13 January 2010 External T.I. 2010-0353221E5 F - CIRD - Réparations
Would repair expenses such as a minor repair to a broken front door lock, a major repair of a part of a garage door motor, a repair of a wall...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 118.04 - Subsection 118.04(1) - Qualifying Renovation | minor repairs qualified as being on an enduring nature | 153 |
15 July 2009 External T.I. 2009-0316451E5 F - Crédit d'impôt pour la rénovation domiciliaire
Regarding the eligibility for the home renovation tax credit ("HRTC") of the costs of a septic tank and the work to instal a leaching bed, CRA...
22 April 2009 Internal T.I. 2009-0312261I7 F - Étude de faisabilité
A corporation that carries on a machining business called in consultants, on whose recommendation the work space is modified to render the...
26 October 2005 External T.I. 2005-0117551E5 F - État des loyers de biens immeubles
In finding that fumigation, spraying, disinfection and demolition costs (of approximately $6,550) incurred by the taxpayer in relation to a rental...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(h) | prohibition applied to travel and accommodation expenses incurred in dealing with a rental property left in substandard condition | 151 |
11 October 2005 External T.I. 2005-0148281E5 F - Déductibilité de dépenses
In finding that actuarial costs incurred in performing triennial valuations respecting a defined benefit plan as required under s. 147.2(2) were...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees | accounting fees in preparing consolidated financial statements generally deductible | 75 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(24) | s. 248(24) does not affect deductibility of fees for preparing consolidated financials | 89 |
7 June 2005 External T.I. 2005-0121921E5 F - Paiement à un emphytéote
Regarding a payment made by a landowner to a related corporation as an inducement to enter into a contract granting a right of emphyteusis, CRA...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Timing | notwithstanding Canderel, tenant inducement payment must be amortized under matching principle if incurred for specific purposes of producing identifiable future revenue | 141 |
30 October 2002 External T.I. 2002-0132745 F - RENOVATION A UN IMMEUBLE
Regarding whether replacing the defective façade of a triplex with red brick (the only material permitted for that heritage neighbourhood) would...
16 November 2001 External T.I. 2001-0101055 - gas station fuel tank leakage cleanup costs
Respecting whether costs incurred to clean up leakage from an underground fuel tank at a gas station were currently deductible, the Directorate...
13 January 1999 Internal T.I. 9832837 - REPLACEMENT PLANTINGS
Replacement plantings of grape wines would be considered to be deductible expenses, whereas replacing one type of fruit by another (e.g., an apple...
Income Tax Technical News, No. 12 under "Meals and Beverages at Golf Clubs"
If a particular software program is only restored to its original condition so that it performs the same applications but the problems of the...
14 January 1997 Internal T.I. 9624927 - CAPITAL V. REPAIRS
In finding that a massive upgrading to old buildings was made on capital account, RC indicated that "whether or not a particular outlay should be...
1996 Ontario Tax Conference Round Table under "Purchase and Sale of Computer Software, Q. 1", 1997 Canadian Tax Journal, Vol. 45, No. 1, at pp. 219-220
"The fact that particular software may be upgraded regularly would indicate that its useful life will last beyond one year. Accordingly, annual...
Ibid., Q. 2
Discussion of circumstances in which computer software developed for the taxpayer's own use should be capitalized.
Ibid., Q. 3-4
The cost of developing software for sale to customers, including the cost of development of a custom software program for a single customer,...
23 May 1995 Internal T.I. 9510337 - ENVIRONMENTAL CLEAN-UP COSTS
Costs incurred, apparently by a purchaser,in connection with the clean-up of environmentally contaminated land (apparently, vacant land) was...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Start-Up and Close-Down Expenditures | 9 |
26 May 1993 Income Tax Severed Letter 9314085 - Lease Inducement Payments
Respecting the treatment of a lease inducement payments made by taxpayers whose ordinary business involved the rental of real property to a...
16 August 1993 Memorandum (Tax Window, No. 33, p. 1, ¶2636)
Costs incurred by commercial landlords in removing asbestos from buildings are capital expenditures.
93 C.P.T.J. - Q.19
Whether or not a particular item included in CEE, CDE or COGPE would be deductible in the absence of the specific provisions of ss.66.1, 66.2 and...
7 October 1991 Memorandum (Tax Window, No. 10, p. 10, ¶1503)
Land owned by a taxpayer in the waste disposal business and used as a landfill site is a capital asset.
4 September 1991 T.I. (Tax Window, No. 8, p. 12, ¶1438)
Contributions made by a U.K. partnership to a U.K. pension plan will be deductible in computing the income of a Canadian partner unless the...
28 August 1991 Memorandum (Tax Window, No. 8, p. 8, ¶1422)
In considering the "enduring benefit" test, the basic question is whether the benefit of the expenditure may reasonably be expected to last longer...
11 June 1991 Memorandum (Tax Window, No. 4, p. 24, ¶1295)
RC normally will not consider an outlay for an asset to be a capital expenditure if the asset has a life expectancy of under three years and costs...
1 March 1991 T.I. 7-4631
Only feasibility study costs in relation to a mineral deposit which are of a current rather than a capital nature are deductible under section 9.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 66.1 - Subsection 66.1(6) - Canadian exploration expense - Paragraph (f) | 57 |
14 May 1990 T.I. (October 1990 Access Letter, ¶1463)
A payment made by a public corporation to acquire a contractual right to share in a partnership's net proceeds from the purchase, processing and...
89 C.P.T.J. - Q20
Site reclamation costs, incurred to return a previously-producing well-site to an environmentally-acceptable condition after the well has been...
88 CPTJ - Q. 20
Delay lease rentals are considered to be payments on account of capital and are a cost of a resource property.
87 C.R. - Q.16
Position re lease inducement payments is as in 85 Round Table.
86 C.R. - Q. 28
Expenses of a feasibility study are deductible until a decision is made to proceed.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(dd) | 19 |
85 C.R. - Q.49
Classification of lease inducement payments as capital expenditures, eligible capital expenditures and current expenditures.
81 C.R. - Q.22
Trustee fees chargeable against income account are allowable where they meet the usual criteria.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(bb) | 24 |
IT-304R "Capital Cost Allowance - Condominiums"
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 68 | 33 | |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 31 | 0 | |
| Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 32 | 0 |
IT-105 "Administrative Costs of Pension Plans"
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(q) | 0 |
IT-283R2 "Capital Cost Allowance - Video Tapes, Videotapes Cassettes, Films, Computer Software and Master Recording Media"
Software is considered to be a capital asset where its useful life is anticipated to last beyond one year.
Technical Advice Memorandum (TAM) 9315004, dated April 1993
Discussion of when environmental clean-up expenditures mandated by the Environmental Protection Agency will be deductible under s. 165 of the...