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

Section 130r82 Disposition versions

2012-09-01

130R82. For the purposes of the definition of “specified leasing property” in the first paragraph of section 130R71 and section 130R76, where, at a particular time, an addition or alteration, referred to in this section as the “additional property”, is made by a taxpayer to any of the taxpayer’s properties, referred to in this section as the “original property”, that is a specified leasing property at the particular time and where by reason of the addition or alteration, the total amount receivable by the taxpayer after the particular time for the use of or the right to use the original property and the additional property exceeds the amount so receivable in respect of the original property, the following rules apply:

(a)  the taxpayer is deemed to have leased the additional property to the lessee at the particular time;

(b)  the expected term of the lease for the additional property is deemed to be greater than 1 year;

(c)  the rate of interest in effect at the particular time in respect of the additional property is deemed to be equal to the rate of interest in effect at that time in respect of the lease for the original property;

(d)  the definition of “specified leasing property” in the first paragraph of section 130R71 is, in respect of the additional property, to be read without reference to its subparagraph c; and

(e)  the amount by which the total amount receivable by the taxpayer after the particular time for the use of or the right to use the original property and the additional property exceeds the amount so receivable in respect of the original property is deemed to be an amount receivable by the taxpayer for the use of or the right to use the additional property.

s. 130R42.12; O.C. 366-94, s. 7; O.C. 1466-98, s. 126; O.C. 134-2009, s. 1.