I-3 - Taxation Act

Section 156.7.5 Disposition versions

2020-09-24

156.7.5. The amount that a taxpayer may deduct in computing the taxpayer’s income from a business for a particular taxation year under section 156.7.4, in respect of a property acquired after 20 November 2018, may not exceed

(a)  where the particular year includes the time at which the property is considered to have become available for use, within the meaning of section 93.7,

i.  in the case where the property is included in Class 50 of Schedule B to the Regulation respecting the Taxation Act (chapter I-3, r. 1), the product obtained by multiplying 16.5% of the capital cost of the property at the end of the particular year by the proportion that the number of days in the particular year is of 365, or

ii.  in the case where the property is included in Class 53 of Schedule B to the Regulation respecting the Taxation Act, the product obtained by multiplying 15% of the capital cost of the property at the end of the particular year by the proportion that the number of days in the particular year is of 365; or

(b)  where the particular year is the year following the year referred to in subparagraph a, the lesser of

i.  the total of

(1)  the amount by which the amount computed under section 156.7.4 in respect of the property for the year referred to in subparagraph a exceeds the amount determined under that subparagraph in respect of the property for that year, and

(2)  the amount computed under section 156.7.4 in respect of the property for the particular year, and

ii.  the total of

(1)  the amount by which the amount computed under subparagraph a in respect of the property for the year referred to in that subparagraph exceeds the amount computed under section 156.7.4 in respect of the property for that year, and

(2)  the product obtained by multiplying the amount determined under the second paragraph in respect of the property by the proportion that the number of days in the particular year is of 365.

The amount to which subparagraph 2 of subparagraph ii of subparagraph b of the first paragraph refers is

(a)  23.9% of the capital cost of the property at the end of the particular year, if it is included in Class 50 of Schedule B to the Regulation respecting the Taxation Act; or

(b)  22.5% of the capital cost of the property at the end of the particular year, if it is included in Class 53 of Schedule B to the Regulation respecting the Taxation Act.

2020, c. 16, s. 37.