Income Tax Regulations — 1101
ate class is hereby prescribed for properties that (c) are described in paragraph (a); and (d) would otherwise be included in the class. Railway Cars (5d) Where more than one property of a taxpayer is a railway car included in Class 35 in Schedule II that was rented, leased or used by the taxpayer in Canada in the taxation year, other than a railway car owned by a corporation, or a partnership any member of which is a corporation, that (a) was at any time in that taxation year a common carrier that owned or operated a railway, or (b) rented or leased the railway cars at any time in that taxation year, by one or more transactions between persons not dealing at arm’s length, to an associated corporation that was, at that time, a common carrier that owned or operated a railway, a separate class is prescribed (c) for all such properties acquired by the taxpayer before February 3, 1990 (other than such properties acquired for rent or lease to another person), (d) for all such properties acquired by the taxpayer after February 2, 1990 (other than such properties acquired for rent or lease to another person), (e) for all such properties acquired by the taxpayer before April 27, 1989 for rent or lease to another person, and (f) for all such properties acquired by the taxpayer after April 26, 1989 for rent or lease to another person. (5d.1) A separate class is hereby prescribed for all property included in Class 35 in Schedule II acquired at a time after December 6, 1991 and before February 28, 2000 by a taxpayer that was at that time a common carrier that owned and operated a railway. (5d.2) A separate class is hereby prescribed for all property included in Class 35 in Schedule II acquired at a time after February 27, 2000 by a taxpayer that was at that time a common carrier that owned and operated a railway. Railway Track and Related Property (5e) A separate class is hereby prescribed for all property included in Class 1 in Schedule II acquired by a taxpayer after March 31, 1977 and before 1988 that is (a) railway track and grading, including components such as rails, ballast, ties and other track material; (b) railway traffic control or signalling equipment, including switching, block signalling, interlocking, crossing protection, detection, speed control or retarding equipment, but not including property that is principally electronic equipment or systems software therefor; or (c) a bridge, culvert, subway or tunnel that is ancillary to railway track and grading. (5e.1) A separate class is hereby prescribed for all property included in Class 1 in Schedule II acquired at a time after December 6, 1991 by a taxpayer that was at that time a common carrier that owned and operated a railway, where the property is (a) railway track and grading, including components such as rails, ballast, ties and other track material; (b) railway traffic control or signalling equipment, including switching, block signalling, interlocking, crossing protection, detection, speed control or retarding equipment, but not including property that is principally electronic equipment or systems software therefor; or (c) a bridge, culvert, subway or tunnel that is ancillary to railway track and grading. (5e.2) A separate class is hereby prescribed for all trestles included in Class 3 in Schedule II acquired at a time after December 6, 1991 by a taxpayer that was at that time a common carrier that owned and operated a railway, where the trestles are ancillary to railway track and grading. (5f) A separate class is hereby prescribed for all trestles included in Class 3 in Schedule II acquired by a taxpayer after March 31, 1977 and before 1988 that are ancillary to railway track and grading. Deemed Depreciable Property (5g) A separate class is hereby prescribed for each property of a taxpayer described in Class 36 in Schedule II. Leasehold Interest in Real Properties (5h) For the purposes of this Part, where more than one property of a taxpayer is described in the same