Income Tax Regulations — 1102
1102 (1) The classes of property described in this Part and in Schedule II shall be deemed not to include property (a) the cost of which would be deductible in computing the taxpayer’s income if the Act were read without reference to sections 66 to 66.4 of the Act; (a.1) the cost of which is included in the taxpayer’s Canadian renewable and conservation expense (within the meaning assigned by section 1219); (b) that is described in the taxpayer’s inventory; (c) that was not acquired by the taxpayer for the purpose of gaining or producing income; (d) that was acquired by an expenditure in respect of which the taxpayer is allowed a deduction in computing income under section 37 of the Act; (e) that was acquired by the taxpayer after November 12, 1981, other than property acquired from a person with whom the taxpayer was not dealing at arm’s length (otherwise than by virtue of a right referred to in paragraph 251(5)(b) of the Act) at the time the property was acquired if the property was acquired in the circumstances where subsection (14) applies, and is (i) a print, etching, drawing, painting, sculpture, or other similar work of art, the cost of which to the taxpayer was not less than $200, (ii) a hand-woven tapestry or carpet or a handmade appliqué, the cost of which to the taxpayer was not less than $215 per square metre, (iii) an engraving, etching, lithograph, woodcut, map or chart, made before 1900, or (iv) antique furniture, or any other antique object, produced more than 100 years before the date it was acquired, the cost of which to the taxpayer was not less than $1,000, other than any property described in subparagraph (i) or (ii) where the individual who created the property was a Canadian (within the meaning assigned by paragraph 1104(10)(a)) at the time the property was created; (f) that is property referred to in paragraph 18(1)(l) of the Act acquired after December 31, 1974, an outlay or expense for the use or maintenance of which is not deductible by virtue of that paragraph; (g) in respect of which an allowance is claimed and permitted under Part XVII; (h) that is a passenger automobile acquired after June 13, 1963 and before January 1, 1966, the cost to the taxpayer of which, minus the initial transportation charges and retail sales tax in respect thereof, exceeded $5,000, unless the automobile was acquired by a person before June 14, 1963 and has by one or more transactions between persons not dealing at arm’s length become vested in the taxpayer; (i) that was deemed by section 18 of the Income Tax Act , as enacted by the Statutes of Canada, 1958, Chapter 32, subsection 8(1), to have been acquired by the taxpayer and that did not vest in the taxpayer before the 1963 taxation year; (j) of a life insurer, that is property used by it in, or held by it in the course of, carrying on an insurance business outside Canada; (k) that is linefill in a pipeline; or (l) referred to in paragraph 81(1)(c.3) of the Act. Partnership Property [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] SOR/94-686, s. 78(F) (1a) Where the taxpayer is a member of a partnership, the classes of property described in this Part and in Schedule II shall be deemed not to include any property that is an interest of the taxpayer in depreciable property that is partnership property of the partnership. Land (2) The classes of property described in Schedule II shall be deemed not to include the land upon which a property described therein was constructed or is situated. Non-Residents (3) Where the taxpayer is a non-resident person, the classes of property described in this Part and in Schedule II shall, except for the purpose of determining the foreign accrual property income of the taxpayer for the purposes of subdivision i of Division B of Part I of the Act, be deemed not to include property that is situated outside Canada. Improvements or Alterations to Leased Properties (4) Subject