Income Tax Regulations — 1100
27)(c) and (28)(d) of the Act, or (II) the time it became available for use by the first transferor in a series of transfers of the same property to which this subsection applies, determined without reference to paragraphs 13(27)(c) and (28)(d) of the Act; and (k) if the property is a property described in paragraph (1)(v), its subparagraph (iv) shall be read, in respect of the property, as “33 1/3 per cent of the capital cost of the property to the taxpayer, and”. (2.21) Where a taxpayer is deemed by a provision of the Act to have disposed of and acquired or reacquired a property, (a) for the purposes of paragraph (2.2)(e) and subsections (19), 1101(lad) and 1102(14) and (14.1), the acquisition or reacquisition shall be deemed to have been from a person with whom the taxpayer was not dealing at arm’s length at the time of the acquisition or reacquisition; and (b) for the purposes of paragraphs (2.2)(f) and (g), the taxpayer shall be deemed to be the person from whom the taxpayer acquired or reacquired the property. (2.3) If a taxpayer has disposed of a property and, because of paragraph (2.2)(h), no amount is required to be included in determining an amount for F in subsection (2) in respect of the property by the person that acquired the property, no amount shall be included by the taxpayer in determining an amount for G in subsection (2) in respect of the disposition of the property. (2.4) For the purposes of subsection (2), where a taxpayer has disposed of property described in Class 10 of Schedule II that would qualify as property described in paragraph (e) of Class 16 of Schedule II if the property had been acquired by the taxpayer after November 12, 1981, the proceeds of disposition of the property shall be deemed to be proceeds of disposition of property described in Class 16 of Schedule II and not of property described in Class 10 of Schedule II. (2.5) Where in a particular taxation year a taxpayer disposes of a property included in Class 10.1 in Schedule II that was owned by the taxpayer at the end of the immediately preceding taxation year, (a) the deduction allowed under subsection (1) in respect of the property in computing the taxpayer’s income for the year shall be determined as if the property had not been disposed of in the particular year and the number of days in the particular year were one-half of the number of days in the particular year otherwise determined; and (b) no amount shall be deducted under subsection (1) in respect of the property in computing the taxpayer’s income for any subsequent taxation year. Taxation Years Less Than 12 Months (3) Where a taxation year is less than 12 months, the amount allowed as a deduction under this section, other than under subsection (0.1) and any of paragraphs (1)(c), (e), (f), (g), (m), (w), (x), (y) and (ya), shall not exceed that proportion of the maximum amount otherwise allowable that the number of days in the taxation year is of 365. (4) Reserved. (5) [Repealed, SOR/78-377, s. 6] Employee’s Automobile or Aircraft (6) [Repealed, SOR/91-673, s. 1] (7) Reserved. Railway Sidings (8) Where a taxpayer, other than an operator of a railway system, has made a capital expenditure pursuant to a contract or arrangement with an operator of a railway system under which a railway siding that does not become the taxpayer’s property is constructed to provide service to the taxpayer’s place of business or to a property acquired by the taxpayer for the purpose of gaining or producing income, there is hereby allowed to the taxpayer, in computing income for the taxation year from the business or property, as the case may be, a deduction equal to such amount as he may claim not exceeding four per cent of the amount remaining, if any, after deducting from the capital expenditure the aggregate of all amounts previously allowed as deductions in respect of the expenditure. Patents (9) Where a part or all of the cost of a patent is determined by reference to the use of the patent, in l