Income Tax Regulations (C.R.C., c. 945)

Regulations are current to 2014-06-12 and last amended on 2014-05-16. Previous Versions

Division IIMaximum Deductions

  •  (1) The amount allowed as a deduction under section 1700 in respect of a property shall not exceed the amount by which the capital cost of the property to the taxpayer exceeds the aggregate of the deductions from income allowed under this Part in respect of the property for previous taxation years.

  • (2) In respect of the 1972 and subsequent taxation years, where subsection 20(5) of the Income Tax Application Rules, applies to a particular property, notwithstanding subsection (1), the amount allowed as a deduction under section 1700 in respect of the property shall not exceed the amount by which

    • (a) the amount determined to be the undepreciated capital cost of the property, under paragraph 20(5)(b) of the Income Tax Application Rules,

    exceeds

    • (b) the aggregate of the deductions from income allowed under this Part in respect of the property for previous taxation years ending after 1971.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/94-686, s. 48.

Division IIIProperty Not Included

  •  (1) Nothing in this Part shall be construed as allowing a deduction in respect of a property

    • (a) the cost of which is deductible in computing the taxpayer’s income;

    • (b) that is described in the taxpayer’s inventory;

    • (c) that was acquired by an expenditure in respect of which the taxpayer is allowed a deduction from income under section 37 of the Act;

    • (d) that has been constituted a prescribed class by subsection 24(2) of chapter 91, S.C. 1966-67;

    • (e) that is included in a separate prescribed class established under subsection 13(14) of the Act;

    • (f) that was not used in the business during the year;

    • (g) that is

      • (i) an animal, or

      • (ii) a tree, shrub, herb or similar growing thing;

    • (h) that was not acquired by the taxpayer for the purpose of gaining or producing income from farming or fishing;

    • (i) that has been included at any time by the taxpayer in a class prescribed under Part XI;

    • (j) that is a passenger automobile acquired after June 13, 1963, and before January 1, 1966, the cost to the taxpayer of which, minus the initial transportation charges and retail sales tax in respect thereof, exceeded $5,000, unless the automobile was acquired by a person before June 14, 1963 and has, by one or more transactions between persons not dealing at arm’s length, become vested in the taxpayer; or

    • (k) that was acquired by the taxpayer after 1971.

  • (2) Where a taxpayer is a member of a partnership, the properties referred to in this Part shall be deemed not to include any property that is an interest of the taxpayer in depreciable property that is partnership property of the partnership.

  • (3) The properties referred to in section 1700 shall be deemed not to include the land upon which a property described therein was constructed or is situated.

  • (4) Where the taxpayer is a non-resident person, the properties referred to in section 1700 shall be deemed not to include property that is situated outside Canada.

  • (5) The provisions of subsections 1102(11), (12) and (13) are applicable mutatis mutandis to paragraph (1)(j).

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/94-686, ss. 15(F), 50(F), 58(F), 70(F), 78(F);
  • SOR/2010-93, s. 15(F).