I-3 - Taxation Act

Section 156.7.4 Disposition versions

2020-09-24

156.7.4. Subject to section 156.7.5, a taxpayer may deduct, in computing the taxpayer’s income from a business for a taxation year, an amount equal to the amount determined, in respect of a prescribed depreciable property, by the formula

A × (B / C).

In the formula in the first paragraph,

(a)  A is an amount equal to the product obtained by multiplying the amount deducted by the taxpayer in computing the taxpayer’s income for the year under paragraph a of section 130 in respect of the prescribed class that includes the property by

i.  35%, where the property is acquired after 28 March 2017 and before 28 March 2018, or

ii.  60%, where the property is acquired after 27 March 2018 and before

(1)  1 July 2019, if the property was acquired pursuant to an obligation in writing entered into before 4 December 2018 or if the construction of the property, by or on behalf of the taxpayer, began before 4 December 2018, or

(2)  4 December 2018, in any other case;

(b)  B is

i.  where the taxation year includes the time at which the property is considered to have become available for use, within the meaning of section 93.7, either of the following amounts:

(1)  if the property is acquired after 20 November 2018, the amount attributable to the property that is added to the undepreciated capital cost of the prescribed class that includes the property, determined for the purpose of computing the amount that is deductible by the taxpayer in computing the taxpayer’s income for the year under paragraph a of section 130, or

(2)  in any other case, one half of the capital cost of the property at the end of the year,

ii.  where the taxation year is the particular year that follows the year referred to in subparagraph i, the amount by which the capital cost of the property at the end of the particular year exceeds the portion of the amount deducted by the taxpayer in computing the taxpayer’s income for the preceding year under paragraph a of section 130 that is attributable to the property, or

iii.  in any other case, zero; and

(c)  C is the undepreciated capital cost at the end of the year of property of the prescribed class that includes the property, determined for the purpose of computing the amount that is deductible by the taxpayer in computing the taxpayer’s income for the year under paragraph a of section 130 before any deduction under that paragraph a for the year.

2020, c. 16, s. 37.