Income Tax Act — I-3.3 20
ired by the taxpayer in the ordinary course of the taxpayer’s business of insurance or the lending of money where (a) the person from whom the loan or lending asset or instrument or commitment was acquired carried on the business of insurance or the lending of money; and (b) the loan or lending asset was made or acquired or the instrument or commitment was issued, made or assumed by the person in the ordinary course of the person’s business of insurance or the lending of money. Application of ss. 13(21) and 138(12) (27.1) The definitions in subsections 13(21) and 138(12) apply to this section. Deduction before available for use (28) In computing a taxpayer’s income from a business or property for a taxation year ending before the time a building or a part thereof acquired after 1989 by the taxpayer becomes available for use by the taxpayer, there may be deducted an amount not exceeding the amount by which the lesser of (a) the amount that would be deductible under paragraph 20(1)(a) for the year in respect of the building if subsection 13(26) did not apply, and (b) the taxpayer’s income for the year from renting the building, computed without reference to this subsection and before deducting any amount in respect of the building under paragraph 20(1)(a) exceeds (c) the amount deductible under paragraph 20(1)(a) for the year in respect of the building, computed without reference to this subsection, and any amount so deducted shall be deemed to be an amount deducted by the taxpayer under paragraph 20(1)(a) in computing the taxpayer’s income for the year. Idem (29) Where, because of subsection 18(3.1), a deduction would, but for this subsection, not be allowed to a taxpayer in respect of an outlay or expense in respect of a building, or part thereof, and the outlay or expense would, but for that subsection and without reference to this subsection, be deductible in computing the taxpayer’s income for a taxation year, there may be deducted in respect of such outlays and expenses in computing the taxpayer’s income for the year an amount equal to the lesser of (a) the total of all such outlays or expenses, and (b) the taxpayer’s income for the year from renting the building or the part thereof computed without reference to subsection 20(28) and this subsection. Specified reserve adjustment (30) For the purpose of the description of N in subclause 20(1)(l)(ii)(D)(II), the specified reserve adjustment for a loan of a taxpayer for a taxation year is the amount determined by the formula 0.1(A × B × C/365) where A is the carrying amount of the impaired loan that is used or would be used in determining the interest income on the loan for the year in accordance with generally accepted accounting principles; B is the effective interest rate on the loan for the year determined in accordance with generally accepted accounting principles; and C is the number of days in the year on which the loan is impaired. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 1 (5th Supp.), s. 20; 1994, c. 7, Sch. II, s. 15, Sch. VIII, ss. 9, 157, c. 8, s. 3, c. 21, s. 12; 1995, c. 3, s. 7, c. 21, ss. 6, 45; 1997, c. 25, s. 5; 1998, c. 19, ss. 4, 81; 1999, c. 22, s. 9; 2000, c. 19, s. 2; 2001, c. 17, ss. 13, 203; 2003, c. 28, s. 3; 2007, c. 35, s. 14; 2009, c. 2, s. 7; 2010, c. 25, s. 6; 2012, c. 31, s. 8; 2013, c. 33, s. 3, c. 34, ss. 57, 97, 180, c. 40, s. 11; 2014, c. 20, s. 366(E); 2016, c. 12, s. 7; 2017, c. 20, s. 4, c. 33, s. 6 2019, c. 29, s. 3 2023, c. 26, s. 8 2024, c. 15, s. 9