Income Tax Regulations — 1101
1101 (1) Where more than one property of a taxpayer is described in the same class in Schedule II and where (a) one of the properties was acquired for the purpose of gaining or producing income from a business, and (b) one of the properties was acquired for the purpose of gaining or producing income from another business or from the property, a separate class is hereby prescribed for the properties that (c) were acquired for the purpose of gaining or producing income from each business; and (d) would otherwise be included in the class. (1a) For the purposes of subsection (1), (a) a life insurance business, and (b) an insurance business other than a life insurance business, shall each be regarded as a separate business. (1ab) Where, at the end of 1971, more than one property of a taxpayer who was a member of a partnership at that time is described in the same class in Schedule II and where (a) one of the properties can reasonably be regarded to be the interest of the taxpayer in a depreciable property that is partnership property of the partnership, and (b) one of the properties is property other than property referred to in paragraph (a), a separate class is hereby prescribed for all properties each of which (c) is a property referred to in paragraph (a); and (d) would otherwise be included in the class. (1ac) Subject to subsection (5h), where more than one property of a taxpayer is described in the same class in Schedule II, and one or more of the properties is a rental property of the taxpayer the capital cost of which to the taxpayer was not less than $50,000, a separate class is hereby prescribed for each such rental property of the taxpayer that would otherwise be included in the same class, other than a rental property that was acquired by the taxpayer before 1972 or that is (a) a building or an interest therein, or (b) a leasehold interest acquired by the taxpayer by reason of the fact that the taxpayer erected a building on leased land, erection of which building was commenced by the taxpayer before 1972 or pursuant to an agreement in writing entered into by the taxpayer before 1972. (1ac.1) For the purposes of this Part, each property of a taxpayer that is a new purpose-built residential rental is prescribed to be a separate class of property. (1ad) Notwithstanding subsection (1ac), a rental property acquired by a taxpayer (a) in the course of a reorganization in respect of which, if a dividend were received by a corporation in the course of the reorganization, subsection 55(2) of the Act would not be applicable to the dividend by reason of the application of paragraph 55(3)(b) of the Act, or (a.1) [Repealed, SOR/90-22, s. 2] (b) 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, (c) [Repealed, SOR/90-22, s. 2] that would otherwise be rental property of the taxpayer of a separate class prescribed under subsection (1ac), shall be deemed not to be property of a separate class prescribed under that subsection if, immediately before it was so acquired by the taxpayer, it was a rental property of the person from whom the property was so acquired of a prescribed class other than a separate class prescribed under that subsection. (1ae) Except in the case of a corporation or partnership described in subsection 1100(12), where more than one property of a taxpayer is described in the same class in Schedule II and where (a) one of the properties is a rental property other than a property of a separate class prescribed under subsection (1ac), and (b) one of the properties is a property other than rental property, a separate class is hereby prescribed for properties that (c) are described in paragraph (a); and (d) would otherwise be included in the class. (1af) A separate class is hereby prescribed for each property included in Class 10.1 in Schedule II. (1ag) If more than one property of a t