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

Section 130r80 Disposition versions

2012-09-01

130R80. 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, a taxpayer provides a property, referred to in this section as the “replacement property”, to a lessee for the remaining term of a lease as a replacement for a similar property, referred to in this section as the “original property”, that the taxpayer had leased to the lessee and where the amount payable by the lessee for the use of or the right to use the replacement property is the same as the amount that was so payable in respect of the original property, the following rules apply:

(a)  the replacement property is deemed to have been leased by the taxpayer to the lessee at the same time and for the same term as the original property;

(b)  the amount of the loan referred to in subparagraph 1 of subparagraph i of paragraph a of section 130R76 is deemed to be equal to the amount of that loan determined in respect of the original property;

(c)  the amount determined under subparagraph ii of paragraph a of section 130R76 in respect of the replacement property is deemed to be equal to the amount so determined in respect of the original property;

(d)  the amounts received or receivable by the taxpayer for the use of or the right to use the original property before the particular time are deemed to have been received or receivable, as the case may be, by the taxpayer for the use of or the right to use the replacement property; and

(e)  the original property is deemed to have ceased to be the subject of the lease at the particular time.

s. 130R42.10; O.C. 366-94, s. 7; O.C. 1466-98, s. 126; O.C. 134-2009, s. 1.