Regulation 1100 - Deductions Allowed

Table of Contents

Subsection 1100(1)

Paragraph 1100(1)(c) - Class 14

Cases

Weinberger v. MNR, 64 DTC 5060 (Ex Ct)

The cost to the taxpayer of a patent included not only the legal expenses incurred in obtaining the patent but also the research-related costs of...

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Administrative Policy

2011 Ruling 2010-0374221R3 - XXXXXXXXXX

A limited partnership for the distribution of a film (the "Picture") pursuant to a distribution licence for 10 years contained in a distribution...

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27 February 2002 Internal T.I. 2002-012120

Where a class 14 asset that originally was purchased at a cost of $100,000 and had a term of ten years, is disposed of in the fifth year, the...

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22 June 2001 Internal T.I. 2001-006546

CCRA is no longer of the view that Regulation 1101(1)(c) require that the capital cost of a property be amortized equally over its life. "[A]...

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Paragraph 1100(1)(g) - Industrial Mineral Mines

Administrative Policy

27 March 2014 External T.I. 2014-0520941E5 F - Industrial mineral mine and related expenditures

CRA affirmed: its position in IT-492, (archived), para. 3 that "the word mineral has its ordinary meaning of any chemical or compound occurring...

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3 February 2014 External T.I. 2013-0506641E5 - CCA class(es) for mineral claims and mining leases

Volcanic aggregate which was produced by a quarry and sold for various construction purposes likely qualified as industrial minerals. CRA in this...

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Paragraph 1100(1)(ta)

Administrative Policy

Weinberger v. MNR, 64 DTC 5060 (Ex Ct)

3 July 1992 T.I. 920476 (January - February Access Letter, p. 12, ¶C20-066)

A Class 24 or 27 property acquired after November 12, 1981 which qualifies under s. 1100(1)(ta)(v) will qualify for write-off over two years.

Paragraph 1100(1)(zg) - Additional Allowance — Year 2000 Computer Hardware and Systems Software

Paragraph 1100(1)(a.1)

Administrative Policy

9 September 2014 External T.I. 2014-0530631E5 F - Alinéa 1100(1)a.1) du Règlement

A pharmaceutical company carries on SR&ED at a building whose floor space is more than 90% utilized as laboratories for pharmaceutical research...

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11 February 2013 External T.I. 2012-0469441E5 F - Aire de plancher - fabrication et transformation

In response to a question as to whether floor space representing a cafeteria, washroom and office qualified, CRA stated (TaxInterpretations...

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Subsection 1100(1.1)

Administrative Policy

10 July 1991 T.I. (Tax Window, No. 5, p. 19, ¶1342)

An investment tax credit will reduce the UCC of the related property with respect to the calculation under Regulation 1100(1.1)(b), but not under...

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Articles

Howick, "Income Tax Aspects of Leasing", Tax Profile, May 1992, p. 211

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 16.1 - Subsection 16.1(1) 0

Subsection 1100(1.11)

Administrative Policy

3 February 1997 T.I. 964063

A sublease of property does not cause the property to become intangible property.

17 December 1993 T.I. 932387 HAA5036-6 (C.T.O. "Specified Leasing Property Rules")

"The circumstances of a particular fact situation will determine whether a sublease causes the property to become 'specified leasing property'. If...

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30 March 1993 T.I. 930830 (C.T.O. "Specified Leasing Property")

"When a corporation derives revenue from the leasing of a vessel on a 'time-charter' basis (i.e., the owner provides all services including fuel,...

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Subsection 1100(2) - Property Acquired in the Year

Articles

Sarah S. Chiu, "Half-Year Rule and Amalgamations", Resource Sector Taxation, Volume IX, No. 2, 2013, p. 638

A textual and contextual interpretation of the half-year rule suggests that the rule may not apply to amalgamations. In particular, the...

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Subsection 1100(2.1)

See Also

McLellan v. M.N.R., 90 DTC 1405 (TCC)

Although agreements did not obligate a partnership to acquire any specific property from a particular vendor but only property of a type or class...

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Subsection 1100(2.2)

Administrative Policy

18 October 2011 External T.I. 2011-0401381E5 - Capital Cost Allowance for a Partnership

None of the exceptions in s. 1100(2.2) to the half-year capital cost allowance rule appear to cover a deemed acquisition of property under s....

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February 1991 TI

Where a corporation ("Pco") transfers depreciable property to a subsidiary ("Subco") and, later in the day, a third party (Aco") acquires all the...

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10 August 2004 Internal T.I. 2004-008020

The exception in Regulation 1100(2.2) for non-arm's length acquisitions of depreciable property situated outside Canada did not apply to an...

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29 December 1989 T.I. (May 1990 Access Letter, ¶1224)

A partnership is a person and a taxpayer for purposes of ss.1100(2.2) and 1102(14).

89 C.P.T.J. - Q13

A partnership will be considered to be a taxpayer for purposes of s. 1100(2.2)(e) and s. 1102(14)(b). Therefore, those provisions will apply to a...

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Paragraph 1100(2.2)(f)

Articles

Sabrina Wong, Sania Ilahi, "Tax Implications of Asset Securitizations", 2015 CTF Annual Conference Report

Non-application of half-year rule on drop-down from lease originator to LP if not inventory (p.8)

This exception to the half-year rule may apply...

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Subsection 1100(2.21)

Administrative Policy

18 October 2011 External T.I. 2011-0401381E5 - Capital Cost Allowance for a Partnership

Subsection 1100(2.21) does not apply to the deeming rule in paragraph 96(8)(a) of the Act, because that paragraph only creates a deemed...

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22 August 2000 External T.I. 2000-000288

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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Subsection 1100(3)

Subsection 1100(4.1)

Administrative Policy

IT-195R4 "Rental Property - Capital Cost Allowance Restrictions"

Subsection 1100(9) - Patents

Administrative Policy

IT-477 "Capital Cost Allowance - Patents, Franchises, Concessions and Licences"

Subsection 1100(11) - Rental Properties

Administrative Policy

IT-195R4 "Rental Property - Capital Cost Allowance Restrictions" 6 September 1991

2. Accordingly, if a taxpayer has more than one class of rental properties, the CCA restriction is not applied to the individual classes of...

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Subsection 1100(12)

See Also

Satin Finish Hardwood Flooring (Ontario) Ltd. v. The Queen, 97 DTC 287 (TCC)

The taxpayer was found to be a principal business corporation notwithstanding that its business of manufacturing unfinished parquet flooring had...

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Administrative Policy

18 April 2001 External T.I. 2001-007010

In response to a suggestion that an individual who started a new business partway through the year was not required to pro-rate capital cost...

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27 March 1992 T.I. 920570

A corporation would be considered to be a principal-business corporation if its sole asset is an interest in a principal business partnership.

Subsection 1100(14)

Cases

Gulf Canada Resources Ltd. v. The Queen, 93 DTC 5345 (FCTD)

A predecessor of the taxpayer ("GCL") approached a developer to erect a large office building in Calgary in order that GCL could eliminate the...

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See Also

McInnes v. The Queen, 2014 CCI 247

The taxpayer owned and operated a rental chalet in Charlevoix Quebec which was furnished including with kitchen utensils, bedding, WiFi and sound...

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Sivasubramaniam v. The Queen, 2008 DTC 3886, 2008 TCC 261 (Informal Procedure)

The taxpayer was unsuccessful in a submission that seven condominiums owned by him, which generated gross revenue of approximately $85,000 in a...

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Jong v. The Queen, 98 DTC 16161 (TCC)

A medical practioner who owned a building in co-ownership with others and used about 45% of the building along with the co-owners in a medical...

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Malenfant v. MNR, 92 DTC 2081 (TCC)

Various hotels and motels of the taxpayer were rental properties given that the revenues were derived principally from the rental of rooms and not...

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Administrative Policy

26 April 1990 T.I. (September 1990 Access Letter, ¶1437)

Where one of the assets of a corporation, which together with its subsidiaries carries on an active business, consist of a 60% undivided interest...

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IT-195R4 "Rental Property - Capital Cost Allowance Restrictions" 6 September 1991

4. ...[T]he word "principally" means "primarily" or "chiefly." In establishing whether a property is used principally for a given purpose, one of...

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Subsection 1100(14.1)

Administrative Policy

2 August 1990 T.I. 900139

[A] person who operates a hotel is in the business of providing services and not in the rentals business. Although Regulation 1100(14.1) could...

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Subsection 1100(15) - Leasing Properties

See Also

McCoy v. The Queen, 2003 DTC 660, 2003 TCC 332

A partnership purchased trading software from a vendor corporation, with the vendor and the partnership agreeing that the vendor would form a...

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Subsection 1100(16)

Administrative Policy

30 October 2003 Internal T.I. 2003-003059

The expression "gross revenue" used in Regulation 1100(16)(a) would not include swap receipts received by a potentially qualifying corporation in...

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18 December 2002 External T.I. 2002-015651

"We are of the view that a corporation that carried on two businesses of the type described in subparagraph 1100(16)(a)(ii) of the Regulations,...

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19 February 1996 T.I. 953091 (C.T.O. "Leasing Business")

Gross revenue from the principal business includes proceeds from the sale of property described in Regulation 1100(16) or property of the same...

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December 1992 B.C. Tax Executives Institute Round Table, Q. 5 (October 1993 Access Letter, p. 478)

Because a joint venture is not recognized by a statute, each corporate joint venturer must account separately for its gross revenue test under...

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31 March 1992 T.I. (Tax Window, No. 18, p. 13, ¶1841)

The fact that a corporation manufactures property that it subsequently sells and leases to its customers will not prevent qualification as a...

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26 March 1990 T.I. (August 1990 Access Letter, ¶1396)

Where one of the two principal business corporations of a principal business partnership acquired its partnership interest upon the commencement...

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5 January 1990 T.I. (June 1990 Access Letter, ¶1285)

It is not necessary for the corporation to provide services in respect of the property which is rented, leased or sold. Discussion of the...

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Articles

Sabrina Wong, Sania Ilahi, "Tax Implications of Asset Securitizations", 2015 CTF Annual Conference Report

Most commonly-used lease securitization structure: drop-down to LP (pp. 3-4)

In the most commonly used lease securitization structure in the last...

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Subsection 1100(17)

Cases

Evans v. The Queen, 87 DTC 5226, [1987] 1 CTC 316, 87 DTC 5226 (FCTD)

The taxpayer acquired a motorhome in 1980 with the intention of renting it out in 1981 as a business endeavour. The leasing property restriction...

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See Also

Barclays Mercantile Industrial Finance Ltd. v. Melluish, [1990] BTC 209 (Ch. D.)

A British corporation ("WBDL") entered into a distribution agreement with a California corporation ("WBI") pursuant to which WBI was granted the...

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Words and Phrases
lease

General Motors Acceptance Corp. (U.K.) Ltd. v. I.R.C., [1985] BTC 324 (HC), aff'd [1987] BTC 71 (C.A.)

In the ordinary course of trade of a finance subsidiary ("GMAC"), it provided a financial package to car dealers, which entailed (1) GMAC...

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Canadian Acceptance Corp. Ltd. v. Regent Park Butcher Shop Ltd. (1969), 67 WWR 297 (Man. C.A.)

Dickson J.A. found that the hiring of a cash register was a chattel lease notwithstanding a clause that provided that the lease was irrevocable...

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Words and Phrases
lease

Crawford v. Kingston, [1952] OR 715 (C.A.)

In finding that an agreement pursuant to which the plaintiff transferred 14 cows to his brother-in-law who was required to return the same number...

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Administrative Policy

14 September 1992, T.I. (Tax Window, No. 24, p. 15, ¶2217)

Leasing property can include application software. In any event, Regulation 110(17.2) extends the concepts of rent to include gross revenue...

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IT-443 "Leasing Property - Capital Cost Allowance Restrictions"

Subsection 1100(17.2)

See Also

Oke v. The Queen, 2009 DTC 1366, 2009 TCC 386 (Informal Procedure), aff'd 2011 DTC 5010 [at 5553], 2010 FCA 350

The taxpayer (Mr. Oke), who leased a recreational vehicle to a company that was in the business of renting recreational vehicles to movie studios...

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Subsection 1100(17.3)

See Also

Thibeault v. The Queen, 2015 TCC 271

The taxpayer leased a boat (his only leasing asset) to a company of which he was the sole shareholder and director for use by the company in...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) boats were not a source of income 60

Subsection 1100(21) - Certified Films and Video Tapes

Articles

Mandell, Yip, "Tax Shelters in the 1990s", 1991 Conference Report, c.35.

Subsection 1100(24) - Specified Energy Property

Articles

Mandel, Yip, "Tax Shelters in the 1990s", 1991 Conference Report, c. 35: Discussion of introduction of specified energy property rules.

Subsection 1100(26)

Administrative Policy

15 September 1992 T.I. (Tax Window, No. 24, p. 9, ¶2179)

The expression "distribution or production" should be interpreted broadly and would include "transmission". Whether a corporation's principal...

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Words and Phrases
principal business

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