Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
CCA entitlement by co-owners of Depreciable property
Position:
Each owner has their own separate and independent class.
Reasons:
Depreciable proper of a taxpayer is that persons cost of the property of a particular class.
960848
XXXXXXXXXX A.M. Brake
March 29, 1996
Dear XXXXXXXXXX:
Re: Capital Cost Allowance, Co-owners
This is in reply to your undated letter received March 4, 1996 wherein you asked certain questions relating to co-owners of property claiming capital cost allowance ("CCA"). Rather than answer your questions specifically we offer our general comments.
When two or more persons acquire a depreciable property as co-owners, each person is considered to have acquired property of a prescribed class having a capital cost of their respective share of the total cost of that property. Each owner will operate their class separate and distinct from the other and each may claim CCA each year up to the maximum allowed by the Income Tax Regulations. There is no requirement that they claim any CCA in any particular year but the fact that they claim less than maximum in one year does not entitle them to increase the amount of the allowable claim in the following year. CCA is claimed on the diminishing balance of the class at the end of each year.
This letter should not be construed as implying that we are in agreement that a particular property is held in a co-ownership arrangement. These comments are given in accordance with the practice of providing opinions referred to in paragraph 21 of Information Circular 70-6R2 and are not binding on Revenue Canada.
We trust our comments will be of assistance to you.
Yours truly,
R. Albert
for Director
Business and General Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1996
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1996
Email this Content