I-3, r. 1 - Regulation respecting the Taxation Act

Section 130r0.4 Disposition versions

2023-03-15

130R0.4. For the purposes of paragraph b of section 130R0.2, in respect of property of a class in Schedule B that is immediate expensing property of an eligible person or partnership solely because of subparagraph i of paragraph c of the definition of “immediate expensing property” in section 130R3, and subject to the second paragraph, an amount incurred by a person or partnership in respect of the property is not to be included in determining the undepreciated capital cost to the eligible person or partnership as of the end of the taxation year of property that is designated immediate expensing property for the taxation year, such undepreciated capital cost being determined before making any deduction under this Title for the taxation year, if the amount is incurred

(a)  before 19 April 2021, where the eligible person or partnership is a Canadian-controlled private corporation; or

(b)  before 1 January 2022, where the eligible person or partnership is an individual or a Canadian partnership.

The first paragraph does not apply where

(a)  the property was acquired by an eligible person or partnership from another person or partnership (in this paragraph referred to as the “transferee” and the “transferor”, respectively) and the acquisition occurred

i.  after 18 April 2021, where the transferee is a Canadian-controlled private corporation, or

ii.  after 31 December 2021, where the transferee is an individual or a Canadian partnership;

(b)  the transferee was either

i.  the eligible person or partnership, or

ii.  a person or partnership that does not deal at arm’s length with the eligible person or partnership; and

(c)  the transferor

i.  dealt at arm’s length with the transferee, and

ii.  held the property as property described in the inventory of a business carried on by the transferor.

S.Q. 2023, c. 2, s. 95.