Section 16.1

Subsection 16.1(1) - Leasing properties

Administrative Policy

17 February 2021 External T.I. 2018-0768051E5 F - Contrat de crédit-bail

Regarding a lease of a truck tractor, CRA indicated that the s. 16.1 election could not be made, as a truck tractor is prescribed property.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(ii) leasing contract cannot be recharacterized as a secured loan funding an acquisition of depreciable property 246
Tax Topics - Income Tax Act - Section 68 lease payments for vehicle lease with bargain purchase option are allocated between ACB of option and deductible lease payments 301
Tax Topics - Income Tax Act - Section 49 - Subsection 49(3) a portion of the lease payments under a lease with a bargain purchase option recharacterized as consideration for the option 146
Tax Topics - Income Tax Act - Section 13 - Subsection 13(5.2) acquisition of leased vehicle pursuant to bargain purchase option followed by sale of vehicle could engage s. 13(5.2) 131
Tax Topics - General Concepts - Substance lease payments, but not the lease itself, could be recharacterized 93

S3-F4-C1 - General Discussion of Capital Cost Allowance

Overview

1.26 Subsection 16.1(1) provides special rules to allow a lessee to claim CCA on certain property (other than property prescribed by...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense 556
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A 791
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Depreciable Property 324
Tax Topics - Income Tax Act - Section 13 - Subsection 13(28) 254
Tax Topics - Income Tax Act - Section 13 - Subsection 13(27) 222
Tax Topics - Income Tax Act - Section 13 - Subsection 13(29) 155
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(2) 212
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(2.2) 351
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(3) 70
Tax Topics - Income Tax Act - Section 18 - Subsection 18(3.1) 166
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7.5) 207
Tax Topics - Income Tax Act - Section 261 - Subsection 261(2) 65
Tax Topics - Income Tax Act - Section 128.1 - Subsection 128.1(1) - Paragraph 128.1(1)(b) 230
Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(c) 170
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(e) 65
Tax Topics - Income Tax Act - Section 43 - Subsection 43(1) 152
Tax Topics - Income Tax Act - Section 68 197
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21.1) - Paragraph 13(21.1)(a) 75
Tax Topics - Income Tax Act - Section 13 - Subsection 13(21.1) - Paragraph 13(21.1)(b) 212
Tax Topics - Income Tax Act - Section 13 - Subsection 13(1) 431
Tax Topics - Income Tax Act - Section 8 - Subsection 8(2) 75
Tax Topics - Income Tax Act - Section 20 - Subsection 20(16.1) 152
Tax Topics - Income Tax Act - Section 13 - Subsection 13(9) 229
Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) 321
Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 8 237
Tax Topics - Income Tax Act - Section 13 - Subsection 13(5) 317
Tax Topics - Income Tax Act - Section 13 - Subsection 13(6) 221

28 April 2015 External T.I. 2015-0566011E5 - Whether s. 16.1 applies to a transport truck

Before concluding that "since a transport truck would be considered exempt property, a lessee and a lessor would not be entitled to elect under...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 18 - Subsection 18(9) deferred deduction of initial lease "down payment" 149

15 December 2014 External T.I. 2014-0548041E5 - Leasing Properties

CRA stated:

Since subsection 16.1(1) is not listed in section 600, a subsection 16.1(1) election cannot be late-filed.

Locations of other summaries Wordcount
Tax Topics - Income Tax Regulations - Regulation 8000 - Paragraph 8000(a) primary purpose of logging trucks not highway use 117

18 June 2014 External T.I. 2013-0516251E5 - Paragraph 16.1(1)(b) - the particular time

Does "the particular time" in s. 16.1(1)(b) mean the time when the lease began or when it was entered into? CRA stated:

[S.] 16.1(1)… states...

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22 August 2000 External T.I. 2000-0002885 - SALE/LEASEBACK TRANSACTION

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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8 June 1993 T.I. (Tax Window, No. 32, p. 18, ¶2615)

After the confirmation of Finance that it was not intended that an election under s. 16.1 should cause equipment not to qualify for an investment...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Regulations - Regulation 2902 48

7 May 1993 T.I. (Tax Window, No. 31, p. 7, ¶2514)

Re effect of election on availability of investment tax credit.

13 November 1991 T.I. (Tax Window, No. 13, p. 18, ¶1594)

A partnership is a person for purposes of s. 16.1. The partner who is first required to file an income tax return for the taxation year in which...

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89 C.R. - Q.8

"A lease is a contract by which a person who owns property grants to another the right to possess, use and enjoy the property for a specific...

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Tax Topics - General Concepts - Substance 49

IT285R2 ARCHIVED - "Capital Cost Allowance - General Comments" 31 March 1994

22. Where by joint election subsection 16.1(1) applies to leased tangible property, the lessee is deemed to have acquired the property, at the...

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Articles

R. Ashton, "Leasing: Recent Developments", 1997 Corporate Management Tax Conference Report, c. 11.

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

Paragraph 16.1(1)(f)

Administrative Policy

9 November 2001 External T.I. 2001-0101685 F - APPLICATION DE 16.1 ET DE 85(1)

A property for which an s. 16.1(1) election has been made cannot be transferred on a rollover basis under s. 85(1) given that, in the absence of...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 85 - Subsection 85(1) a property for which an s. 16.1(1) election has been made cannot be transferred on a rollover basis under s. 85(1) 83