,canada ,rev5ue ,ag5cy                #a

          ,9t]pret,n ,bullet9
    
,numb]3 ,,it-#bgc;,r#b
,date3 ,septemb] #ac1 #bjjj
,subject3 ,9come ,tax ,act--,gov]n;t
  ,assi/.e--,g5]al ,-;ts
,ref];e3 ,sec;n #i1 subsec;n #ac7#g.a71
  p>agraphs #ab7#a77x7 & #ec7#b77k7 7al
  sec;ns #ff1 #ff.a1 #ff.b1 #ff.d &
  #abf2 subsec;ns #ab7#b.a71 #ab7#b.b71
  #ac7#g.d71 #ac7#ba71 #ad7#aj71
  #ad7#aa71 #ec7#b.a71 #abg7#i7 &
  #bdh7#af72 p>agraphs #ab7#a77t71
  #bj7#a77hh71 #bj7#a77hh4#a71
  #dj7#b77i71 #ec7#b77s7 & #ef7#a77s7 (!
  ,9come ,tax ,act2 & sec;ns #fgjj1
  #fgjj.a1 #fgjj.b1 #fgjb1 #fgje & #gcjj
  (! ,9come ,tax ,regul,ns7

  ,at ! ,canada ,cu/oms & ,rev5ue ,ag5cy
7,,ccra71 we issue 9come tax 9t]pret,n
bullet9s 7,,it's7 9 ord] 6provide
te*nical 9t]pret,ns & posi;ns         #a
             ,,it-#bgc;,r#b          a#a
reg>d+ c]ta9 provi.ns 3ta9$ 9 9come tax
law4 ,due 6_! te*nical nature1 ,,it's >e
us$ prim>ily 0\r /aff1 tax speciali/s1 &
o!r 9dividuals :o h an 9t]e/ 9 tax
matt]s4 ,= ^? r1d]s :o pref] a less
te*nical explan,n (! law1 we (f] o!r
public,ns1 s* z tax guides & pamphlets4
  ,:ile ! -;ts 9 a "picul> p>agraph 9 an
,,it may relate 6provi.ns (! law 9 =ce
at ! "t !y 7 made1 s* -;ts >e n a
sub/itute =! law4 ,! r1d] %d1 "!=e1
3sid] s* -;ts 9 li<t (! relevant
provi.ns (! law 9 =ce =! "picul> tax,n
ye> 2+ 3sid]$1 tak+ 96a3.t ! e6ect ( any
relevant am5d;ts 6^? provi.ns or
relevant c\rt deci.ns o3urr+ af ! date
on : ! -;ts 7 made4
  ,subject 6! abv1 an 9t]pret,n or
posi;n 3ta9$ 9 an ,,it g5],y applies z
(! date on : x 0 publiciz$1 un.s o!rwise
specifi$4 ,if "! is a subsequ5t *ange 9
t 9t]pret,n or posi;n &! *ange is
b5eficial 6taxpay]s1 x is usu,y e6ective
= future assess;ts & reassess;ts4     #b
             ,,it-#bgc;,r#b          b#a
,if1 on ! o!r h&1 ! *ange is n fav\ra#
6taxpay]s1 x w norm,y 2 e6ective =!
curr5t & subsequ5t tax,n ye>s or =
transac;ns 5t]$ 96af ! date on : ! *ange
is publiciz$4
  ,if y h any -;ts reg>d+ matt]s 4cuss$
9 an ,,it1 pl1se s5d !m to3

  ,director1 ,busi;s & ,public,ns
    ,divi.n
  ,9come ,tax ,rul+s ,directorate
  ,policy & ,legisl,n ,bran*
  ,canada ,cu/oms & ,rev5ue ,ag5cy
  ,ottawa ,,on ,k#a;,a #j;,l#e

  ,an (ficial v].n ( ? ,,it w 2 availa#
on \r ,9t]net site at3
_+www.ccra-adrc.gc.ca_:





                                      #c
                 ,3t5ts              c#a
    
,applic,n
,summ>y
,4cus.n & ,9t]pret,n
  ,g5]al ,3sid],ns 7p>agraphs #a-b7
  ,s\rce (! ,assi/.e 7p>agraph #c7
  ,reduc;n (! ,co/ ( ,capital ,prop]ty
    ,deprecia# prop]ty 7p>agraph #d7
    ,non-deprecia# capital prop]ty
      7p>agraph #e7
    ,assi/.e provid$ 9 respect ( eligi#
      capital exp5ditures 7p>agraph #f7
  ,am.ts ,9clud$ 9 ,9come ,"u ,p>agraph
    #ab7#a77x7
    ,applic,n ( p>agraph #ab7#a77x7
      7p>agraph #g7
    ,excep;ns 6! p>agraph #ab7#a77x7
      require;t 7p>agraph #h7
    ,prescrib$ am.ts 7p>agraph #i7
    ,elec;n 6reduce ! co/ ( capital
      prop]ty 7p>agraphs #aj-ac7
    ,elec;n 6reduce ! am.t ( an \tlay or
      exp5se 7p>agraphs #ad-ae7
                                      #d
             ,,it-#bgc;,r#b          d#a
    ,=giva# loans & gu>antees
      7p>agraph #af7
    ,tax cr$its & deduc;ns f tax
      7p>agraph #ag7
    ,refunds 7p>agraph #ah7
  ,"pn]%ips & ,tru/s 7p>agraph #ai7
  ,assi/.e ,provid$ 9 ,respect (
    ,res\rce ,prop]ty 7p>agraph #bj7
  ,9ve/;t ,tax ,cr$it 7p>agraph #ba7
  ,gds & ,s]vices ,tax 7p>agraph #bb7
  ,9duce;ts 6,m$ical ,practi;n]s
    7p>agraph #bc7
  ,assi/.e f a ,=eign ,gov]n;t
    7p>agraph #bd7
  ,natural ,4a/]s 7p>agraph #be7
  ,repay;ts ( ,assi/.e
    ,g5]al 7p>agraph #bf7
    ,repay;ts ( assi/.e 9 respect (
      eligi# capital exp5ditures
      7p>agraph #bg7
    ,repay;ts ( assi/.e 9 respect ( non-
      deprecia# capital prop]ty
      7p>agraph #bh7
                                      #e
             ,,it-#bgc;,r#b          e#a
    ,repay;ts ( assi/.e 9 respect (
      deprecia# prop]ty 7p>agraph #bi7
    ,repay;ts ( assi/.e af amalgam,n
      7p>agraph #cj7
,explan,n ( ,*anges
--------------------------------------#b
               ,applic,n
    
  ,? bullet9 c.els & replaces ,9t]pret,n
,bullet9 ,,it-#bgc;,r dat$ ,janu>y #ai1
#aiha1 xs ,special ,rel1se dat$ ,decemb]
#ca1 #aiha1 & ,,it-#ahb dat$ ,octob]
#bh1 #aigd4 ,x applies 6! grants & o!r
gov]n;t assi/.e describ$ 9 ^! previ\sly
c.ell$ bullet9s3 ,,it-#ec;,r1 ,,it-#bjd1
,,it-#bbh;,r1 ,,it-#bce1 ,,it-#bdi1
,,it-#bej1 ,,it-#bea1 ,,it-#beb1
,,it-#bec1 ,,it-#bgf1 ,,it-#bgi1
,,it-#bid & ,,it-#dee4 ,^! bullet9s 7
c.ell$ 0,9t]pret,n ,bullet9 ,directive
,,itd-#b dat$ ,may #ag1 #aiia1
3sequ5tial on ! 9troduc;n ( p>agraph
#ab7#a77x7 applica# 6c]ta9 9duce;ts &
assi/.e rcvd af ,may #bb1 #aihe4 ,!   #f
             ,,it-#bgc;,r#b          a#b
e6ective date (a "picul> legislative
provi.n 4cuss$ 9 ! bullet9 may 2 9dicat$
9 ! ,explan,n ( ,*anges sec;n 7or1 9 "s
cases1 9 ! ,4cus.n & ,9t]pret,n sec;n7
(! bullet94 ,h["e1 ": ! bullet9 is sil5t
) respect 6! e6ective date (a "picul>
provi.n1 s* date c 2 obta9$ f ! legisl,n
xf4

                ,summ>y
    
  ,? bullet9 d1ls )! tax tr1t;t (
9duce;ts & o!r =ms ( gov]n;t assi/.e
rcvd 0a taxpay] 9 ! c\rse ( e>n+ 9come f
a busi;s or prop]ty4 ,x 4cusses :5 s*
assi/.e is taxa# & :5 x is n1 &! e6ect (
any repay;ts4 ,x expla9s ! rules : all[
a taxpay] 6reduce ! co/ (a prop]ty :5 s*
assi/.e is rcvd 9 respect (! acquisi;n (
capital prop]ty4 ,x 4cusses ! tax
implic,ns = gov]n;t assi/.e rcvd 0a
memb] (a "pn]%ip or a b5efici>y (a tru/4
,x al 4cusses ! 9come tax tr1t;t ( 9put
tax cr$its us$ 9 det]m9+ ! am.t (     #g
             ,,it-#bgc;,r#b          b#b
gds & s]vices tax paya# 9 respect (a
busi;s4

          ,4cus.n & ,9t]pret,n
    
            ,g5]al ,3sid],ns
            7p>agraphs #a-b7
    
#a4 ,a taxpay] c>ry+ on a busi;s or e>n+
  9come f prop]ty may rcv "s =m (
  f9ancial assi/.e f a gov]n;t s\rce z
  an 9duce;t 7e4g41 m1sures 69cr1se
  employ;t1 m1sures 6reduce produc;n (
  c]ta9 9v5tory s* z fi% or produce71 z
  a result ( "s gov]n;tal ac;n o!r ?an
  expropri,n 7s* z an ord] =! de/ruc;n (
  c]ta9 capital assets or 9v5tory (!
  taxpay]1 e4g41 animals su6]+ f 41se71
  or 9 respect ( an 9come or prop]ty
  loss caus$ 0a 4a/] 7s* z a flood1 fro/
  or explo.n74 ,6det]m9e ! tax tr1t;t
  6be appli$ 9 respect ( s* f9ancial
  assi/.e1 ! foll[+ factors m/ 2 3sid]$3
                                      #h
             ,,it-#bgc;,r#b          c#b
  --:e!r ! taxpay] is 5titl$ 6! am.t 2c
    (a 3tract1 /atute law1 ord]-in-
    c\ncil1 etc42 &
  --:e!r ! assi/.e is relat$ 6an exp5se
    or 6! acquisi;n ( capital prop]ty4
#b4 ,:5 assi/.e is rcvd 9 ! c\rse ( e>n+
  9come f a busi;s or prop]ty1 !
  applic,n ( well-a3ept$ busi;s
  pr9ciples =! purpose ( calculat+ pr(it
  or loss "u sec;n #i -monly requires !
  co/ ( an asset or ! am.t ( an exp5se
  6be reduc$ 0any reimburse;t or simil>
  pay;t t relates 6! acquisi;n (! asset
  or ! exp5se 9curr$4 ,:5 a p]son has a
  "r 6an am.t 2c (a 3tract1 /atute law1
  ord]-in-c\ncil1 etc41 ! am.t rcvd =!
  loss or de/ruc;n ( capital prop]ty is
  3sid]$ 6be proce$s ( 4posi;n rcvd on !
  4posi;n ( t prop]ty1 ":as any -p5s,n
  rcvd =! loss or de/ruc;n ( 9v5tory or
  = loss ( pr(its is 3sid]$ 6be 9come f
  c>ry+ on a busi;s or 9come f prop]ty1
  z appropriate4 ,if ! applic,n ( well-
  a3ept$ busi;s pr9ciples relat+ 6!   #i
             ,,it-#bgc;,r#b          d#b
  calcul,n ( pr(it or loss =! purpose (
  sec;n #i does n require ! gov]n;t
  assi/.e 6be 9clud$ 9 9come1 or 6reduce
  ! co/ or capital co/ (a prop]ty or !
  am.t deducti# z an exp5se1 a specific
  provi.n (! ,9come ,tax ,act1 s* z
  p>agraph #ab7#a77t71 #ab7#a77x71
  #ab7#a77x4#a7 or #bh7#a77d7 7: ref]s
  6am.ts def]r$ "u sec;n #hj.c71 or
  subp>agraph #ef7#a77a77;vi71 may apply
  6require ! am.t 6be 9clud$ 9 9come4

           ,s\rce (! ,assi/.e
             7p>agraph #c7
    
#c4 ,o!r ?an ! ref];e 6assi/.e 9
  p>agraph #ah1 a ref];e 6assi/.e 9 ?
  bullet9 9cludes all am.ts describ$ 9
  p>agraph #g rcvd directly f a gov]n;t1
  municipal;y or o!r public au?or;y4 ,s*
  assi/.e 9cludes am.ts rcvd f a f$]al1
  prov9cial or =eign gov]n;t1 a
  municipal;y1 a cr[n corpor,n or any
  o!r public au?or;y 7ref]r$         #aj
             ,,it-#bgc;,r#b          e#b
  6collectively z 8gov]n;t organiz,ns0 9
  ? bullet974 ,al? 3sid],n %d al 2 giv5
  6! nature (! func;ns p]=m$ 0! 5t;y1 a
  public au?or;y is g5],y an 5t;y :3
  7a7 has a duty 6! public2
  7b7 is subject 6a significant degree (
    gov]n;tal 3trol2 &
  7c7 uses xs pr(its =! b5efit (!
    public4
  
  ,p>agraph #ab7#a77x7 &! relat$
  provi.ns 3c]n+ gov]n;t assi/.e w apply
  :5 a taxpay] rcvs assi/.e 9directly f
  a gov]n;t organiz,n af ,febru>y #bc1
  #aiih1 un.s ! assi/.e 0 rcvd 2f #aiii
  pursuant 6an agree;t 9 writ+ t 0 made
  2f ,febru>y #bd1 #aiih4 ,? 9cludes
  assi/.e rcvd f a n-=-pr(it 5t;y t1 9
  turn1 rcvs xs fund+ f a gov]n;t
  organiz,n4



                                     #aa
      ,reduc;n (! ,co/ ( ,capital    f#b
                ,prop]ty
    
           ,deprecia# prop]ty
             7p>agraph #d7
    
#d4 ,:5 a taxpay] rcvs or is 5titl$ 6rcv
  gov]n;t assi/.e 9 respect ( deprecia#
  prop]ty1 ! mann] 9 : ! reduc;n 6!
  capital co/ (! deprecia# prop]ty is
  appli$ dep5ds on :e!r ! 5title;t >ises
  or ! am.t is rcvd 2f ! 4posi;n or af !
  4posi;n (! prop]ty = :
--------------------------------------#c
  ! assi/.e is provid$4 ,:5 a taxpay] is
  5titl$ 6rcv assi/.e =a deprecia#
  prop]ty 2f ! prop]ty is 4pos$ (1
  subsec;n #ac7#g.a7 applies 6reduce !
  capital co/ (! prop]ty 7z det]m9$ )\t
  ref];e 6sec;n #hj1 or subsec;n
  #ac7#g.a7 or 7#g.d77 0! am.t (!
  assi/.e4 ,:5 a taxpay] is n 5titl$
  6rcv & does n rcv ! assi/.e until af !
  deprecia# prop]ty has be5 4pos$ (1 x
  is ! undepreciat$ capital co/      #ab
             ,,it-#bgc;,r#b          a#c
  7,,ucc7 (! prescrib$ class ( prop]ty 9
  : ! prop]ty 0 previ\sly 9clud$ t is
  reduc$ 0m1ns ( v>ia# ;,j (! =mula 9
  subsec;n #ac7#ba7 = calculat+ ! ,,ucc
  (a class at a "picul> "t4 ,ref] 6!
  curr5t v].n ( ,,it-#dgh1 ,capital ,co/
  ,all[.e--,recapture & ,t]m9al ,loss1 =
  fur!r 9=m,n on h[ recapture ( capital
  co/ all[.e may o3ur if ! assi/.e is
  rcvd af ! prop]ty is 4pos$ (4

     ,non-deprecia# capital prop]ty
             7p>agraph #e7
    
#e4 ,:5 a taxpay] rcvs or is 5titl$ 6rcv
  gov]n;t assi/.e 9 respect ( capital
  prop]ty t is n deprecia# prop]ty1
  p>agraph #ec7#b77k7 norm,y applies
  6reduce ! adju/$ co/ base 7,,acb7 (!
  prop]ty4 ,al? p>agraph #ec7#b77k7 does
  n apply 6assi/.e rcvd or receiva# 9
  respect ( %>es (a prescrib$ v5ture
  capital corpor,n or prescrib$ lab\r-
  sponsor$ v5ture capital            #ac
             ,,it-#bgc;,r#b          b#c
  corpor,n1 or %>es (a taxa# ,canadian
  corpor,n held 9 a prescrib$ /ock sav+s
  plan1 any capital loss r1liz$ on !
  4posi;n ( s* %>es m/ 2 reduc$ 0! am.t
  ( assi/.e rcvd or receiva# 9 respect (
  t %>e 0r1son ( p>agraph #dj7#b77i74
  ,if ! prop]ty is 4pos$ ( 2f ! assi/.e
  is rcvd or 2comes receiva#1 "! is no
  provi.n 6retroactively reduce ! ,,acb
  ( t prop]ty1 & "!=e ! assi/.e m/ 2
  9clud$ 9 9come "u p>agraph #ab7#a77x7
  :5 rcvd4

      ,assi/.e provid$ 9 respect (
       eligi# capital exp5ditures
             7p>agraph #f7
    
#f4 ,"u subsec;n #ad7#aj71 ! am.t (a
  taxpay]'s eligi# capital exp5diture 9
  respect (a busi;s is reduc$ 0! full
  am.t ( any gov]n;t assi/.e ! taxpay]
  rcvd or 0 5titl$ 6rcv1 net ( any am.t
  repd pursuant 6a legal oblig,n 6d s
  7see p>agraph #bg =! e6ect ( any   #ad
             ,,it-#bgc;,r#b          c#c
  repay;ts made pursuant 6a legal
  oblig,n 6d s74 ,z a result1 ! am.t (a
  taxpay]'s eligi# capital exp5diture
  7&! result+ cumulative eligi# capital7
  c *ange 0virtue (! receipt or repay;t
  ( assi/.e z l;g z ! taxpay] 3t9ues
  6c>ry on ! busi;s4 ,h["e1 :5 gov]n;t
  assi/.e 9 respect ( an eligi# capital
  exp5diture is rcvd af a taxpay] c1ses
  6c>ry on ! busi;s 6: ! eligi# capital
  exp5diture relates1 x is 9clud$ 9
  9come "u p>agraph #ab7#a77x74

      ,am.ts ,9clud$ 9 ,9come ,"u
          ,p>agraph #ab7#a77x7
    
          ,applic,n ( p>agraph
        #ab7#a77x7 7p>agraph #g7
    
#g4 ,p>agraph #ab7#a77x7 applies 6am.ts
  rcvd 9 respect ( an \tlay1 an exp5se
  or ! co/ (a prop]ty1 :e!r rcvd z a
  refund1 reimburse;t1 3tribu;n1 all[.e1
  or z assi/.e ( any k9d 79clud+     #ae
             ,,it-#bgc;,r#b          d#c
  assi/.e 9 ! =m (a grant1 subsidy1
  =giva# loan or deduc;n f tax71 un.s "o
  (! excep;ns 9 subp>agraphs
  #ab7#a77x77;v7 to 7;viii7 applies 7see
  p>agraph #h74 ,p>agraph #ab7#a77x7 al
  applies 69duce;ts ( any k9d1 9clud+
  grants1 subsidies1 all[.es1 =giva#
  loans & deduc;ns f tax1 un.s "o (!
  excep;ns describ$ 9 p>agraph #h
  applies4

         ,excep;ns 6! p>agraph
          #ab7#a77x7 require;t
             7p>agraph #h7
    
#h4 ,! am.t ( any assi/.e or 9duce;t
  describ$ 9 p>agraph #ab7#a77x7 is n
  9clud$ 9 9come if ! am.t3
  7a7 is prescrib$ "u sec;n #gcjj (!
    ,9come ,tax ,regul,ns 7see --
    p>agraph #i72
  7b7 is o!rwise 9clud$ 9 ! taxpay]'s
    9come =! ye> or a previ\s ye> 7=
    example1 if ! am.t is requir$    #af
             ,,it-#bgc;,r#b          e#c
    6be 9clud$ 9 9come 0r1son ( well-
    a3ept$ busi;s pr9ciples or any (!
    provi.ns (! ,act not$ 9 p>agraph
    #b72
  7c7 reduces ! co/ or capital co/ (a
    prop]ty 7see p>agraphs #d1 #e & #aj
    6#ac7--note1 h["e1 t p>agraph
    #ab7#a77x7 does apply ": ! reduc;n
    is made only =! purposes (! def9i;n
    ( 89ve/;t tax cr$it0 9 subsec;n
    #abg7#i72
  7d7 reduces ! am.t 9 respect ( an
    \tlay or exp5se 7see p>agraphs #ad &
    #ae72
  7e7 is o!rwise deduct$ 9 -put+ any
    bal.e ( undeduct$ \tlays1 exp5ses or
    o!r am.ts (! taxpay] =! ye> or a
    previ\s ye> 7e4g41 see p>agraph #f
    or p>agraph #bj72 or
  7f7 is r1sonably 3sid]$ a pay;t made
    =! acquisi;n 0! pay] 7i4e41 a
    gov]n;t organiz,n7 ( an 9t]e/ 9 !
    taxpay] or 9 ! busi;s or prop]ty (!
    taxpay] 7= example1 :5 9         #ag
             ,,it-#bgc;,r#b          f#c
    ex*ange =! funds1 a gov]n;t
    organiz,n rcvs an 5title;t 6a %>e (!
    pr(its (! busi;s74
  
     ,prescrib$ am.ts 7p>agraph #i7
    
#i4 ,! prescrib$ am.ts set \ 9 sec;n
  #gcjj (! ,regul,ns 9clude c]ta9 pay;ts
  6aborig9al-3troll$ corpor,ns z well z
  assi/.e provid$ 0a prov9ce or ! f$]al
  gov]n;t 9 ! =m (a tax cr$it or o!r
  assi/.e =! acquisi;n (a %>e ( c]ta9
  v5ture capital corpor,ns prescrib$ 9 !
  ,regul,ns4 ,^! am.ts >e n 9clud$ 9
  9come "u p>agraph #ab7#a77x7 & d n
  reduce ! ,,acb ( any %>es (a
  8prescrib$
--------------------------------------#d
  v5ture capital corpor,n01 a 8prescrib$
  lab\r-sponsor$ v5ture capital
  corpor,n0 or %>es (a taxa# ,canadian
  corpor,n held 9 a 8prescrib$ /ock
  sav+s plan04 ,h["e1 see p>agraph #e =!
  e6ect ( s* assi/.e on ! am.t (     #ah
             ,,it-#bgc;,r#b          a#d
  any capital loss r1liz$ on ! 4posi;n (
  s* %>es4

        ,elec;n 6reduce ! co/ (
            capital prop]ty
           7p>agraphs #aj-ac7
    
#aj4 ,a taxpay] may elect 9 a3ord.e )
  subsec;n #ac7#g.d7 or #ec7#b.a7
  6reduce ! capital co/ or co/ ( capital
  prop]ty acquir$ ) assi/.e 9 ord] 6def]
  ! tax 3sequ;es ( hav+ an am.t 9clud$ 9
  9come "u p>agraph #ab7#a77x74 ,an
  elec;n "u subsec;n #ac7#g.d7 may 2
  made 9 respect ( assi/.e rcvd 9
  respect ( deprecia# prop]ty1 & an
  elec;n "u subsec;n #ec7#b.a7 may 2
  made 9 respect ( assi/.e rcvd 9
  respect ( capital prop]ty o!r ?an
  deprecia# prop]ty1 provid$ t ! prop]ty
  is acquir$ 9 ! ye> ! assi/.e is rcvd1
  ! immly foll[+ ye> or ! immly prec$+
  ?ree ye>s4 ,! elect$ am.t _c 2 grt]
  ?an ! l1/ (3                       #ai
             ,,it-#bgc;,r#b          b#d
  7a7 ! capital co/ (! deprecia# prop]ty
    z o!rwise det]m9$ 7b n 9clud+ any
    adju/;ts requir$ 0r1son ( subsec;n
    #ac7#g.a771 or ! ,,acb ( any o!r
    capital prop]ty at ! "t ! prop]ty 0
    acquir$1 det]m9$ )\t ref];e
    6p>agraph #ec7#b77s71
  7b7 ! actual am.t ( assi/.e rcvd1 &
  7c7 nil1 9 cases ": ! taxpay] has
    4pos$ (! prop]ty 2f ! ye> 9 : !
    assi/.e is rcvd4
#aa4 ,) respect 6non-deprecia# capital
  prop]ty1 ! limit describ$ 9 p>agraph
  #aj7a7 w usu,y correspond 6! actual
  co/ ( acquir+ ! prop]ty 2f ! applic,n
  ( any (! adju/;ts 9 sec;n #ec4 ,!
  limit,n 9 p>agraph #aj7c7 prev5ts a
  taxpay] f mak+ an elec;n 9 respect (
  prop]ty : has be5 4pos$ ( 2f ! tax,n
  ye> 9 : ! assi/.e is rcvd4 ,al? a
  taxpay] does n h 6elect on ! full am.t
  ( assi/.e rcvd1 any assi/.e 9 excess
  (! elect$ am.t is 9clud$ 9 9come "u
  p>agraph #ab7#a77x74               #bj
             ,,it-#bgc;,r#b          c#d
#ab4 ,a taxpay] may make ! abv elec;ns 9
  ! ye> ! assi/.e is rcvd or 9 ! foll[+
  ye> if ! prop]ty 0 acquir$ 9 t ye>4 ,9
  bo? cases1 ! elec;n m/ 2 fil$ no lat]
  ?an ! "d on : ! 9come tax return =!
  ye> 7i4e41 ! tax,n ye> ( receipt or !
  tax,n ye> ( acquisi;n7 is due4 ,!
  elec;n is made 0m1ns (a sign$ lr
  a3ompany+ ! applica# 9come tax return
  : /ates3
  7a7 ! subsec;n "u : ! elec;n is 2+
    made2
  7b7 ! elect$ am.t2
  7c7 ! am.t ( assi/.e &! date x 0 rcvd2
  7d7 ! date ! prop]ty 0 acquir$2 &
  7e7 ! ,,acb or ! capital co/ (!
    prop]ty z det]m9$ 2f x is reduc$ 0!
    elect$ am.t4
#ac4 ,:5 an am.t ( assi/.e is rcvd 9 a
  ye> &! prop]ty 6: ! assi/.e relates is
  acquir$ 9 ! immly foll[+ ye>1 ! am.t
  is requir$ 6be 9clud$ 9 9come =! ye> (
  receipt "u p>agraph #ab7#a77x7 un.s "o
  (! excep;ns 9 p>agraph #h          #ba
             ,,it-#bgc;,r#b          d#d
  applies4 ,:5 ! prop]ty is acquir$ 9 !
  foll[+ ye>1 &! taxpay] makes an elec;n
  "u subsec;n #ac7#g.d7 or #ec7#b.a71 !
  tax return =! previ\s ye> w 2
  reassess$ 6remove ! am.t 9clud$ 9
  9come 6! ext5t (! elect$ or specifi$
  am.t4 ,h["e1 if ! prop]ty is acquir$
  on or 2f ! date on : ! taxpay] is
  requir$ 6file ! tax return =! ye> 9 :
  ! assi/.e is rcvd1 ! elec;n c 2 fil$ )
  t return &! am.t (! assi/.e t is
  subject 6! elec;n ne$ n 2 9clud$ 9
  9come "u p>agraph #ab7#a77x7 = t
  previ\s ye>4

      ,elec;n 6reduce ! am.t ( an
            \tlay or exp5se
           7p>agraphs #ad-ae7
    
#ad4 ,"u subsec;n #ab7#b.b71 a taxpay]
  may elect 6reduce ! am.t ( an \tlay or
  exp5se 7:e!r deducti# or n7 9curr$ 9 !
  ye>1 ! immly foll[+ ye> or any prec$+
  ye> 0all or "p (! gov]n;t          #bb
             ,,it-#bgc;,r#b          e#d
  assi/.e rcvd 9 ! ye> 9 respect (!
  \tlay or exp5se & : wd o!rwise 2
  9clud$ 9 9come "u p>agraph #ab7#a77x74
  ,? elec;n may 2 made 9 respect (
  assi/.e o!r ?an assi/.e rcvd = an
  \tlay or exp5se : relates 6! co/ (!
  taxpay]'s prop]ty 7e4g4 legal fees
  6acquire capital prop]ty74 ,! e6ect (
  an elec;n "u ? provi.n is 6reduce !
  am.t requir$ 6be 9clud$ 9 9come "u
  p>agraph #ab7#a77x7 =! ye> 9 : !
  assi/.e is rcvd1 & 6reduce ! am.t (!
  relat$ exp5se or \tlay4 ,if ! am.t 0
  deduct$ 9 -put+ ! taxpay]'s 9come =a
  prec$+ ye>1 an adju/;t 6t ye> wd 2
  requir$ 9 ord] 6make ! elec;n
  e6ective4 ,:5 ! adju/;t 6reduce !
  exp5se or \tlay relates 6a tax,n ye> =
  : a notice ( assess;t has alr be5
  issu$1 subsec;n #ab7#b.b7 provides t a
  notice ( reassess;t may 2 issu$ ev5
  ?\< ! normal reassess;t p]iod has
  expir$ &a waiv] z describ$ 9 subsec;n
  #aeb7#d7 has n be5 fil$ 0!         #bc
             ,,it-#bgc;,r#b          f#d
  taxpay]4 ,s* a reassess;t w 9clude an
  adju/;t 6any 9t]e/ or p5alties : may 2
  applica# 6! tax,n ye> s reassess$4
#ae4 ,an elec;n "u subsec;n #ab7#b.b7 m/
  2 fil$ on or 2f ! date t ! 9come tax
  return is due 6be fil$ 7or wd 2 due if
  9come tax 7 paya# "u ,"p ,i = t ye>7
  =! ye> ! assi/.e is rcvd or =! ye> !
  \tlay or exp5se is made or 9curr$1
  :i*"e is lat]4 ,! elec;n is made 9 a
  mann] simil> 6t describ$ 9 p>agraph
  #ab1 9dicat+ ! am.t (! \tlay or exp5se
  &! date on : ! \tlay or exp5se 0 made
  or 9curr$4
--------------------------------------#e
       ,=giva# loans & gu>antees
             7p>agraph #af7
    
#af4 ,=giva# loans & pay;ts 0gov]n;t
  organiz,n gu>antors >e 9clud$ 9 9come
  "u p>agraph #ab7#a77x7 at ! "t ! loan
  is grant$ or ! gu>antor makes a pay;t
  6! cr$itor un.s "o (! excep;ns
  describ$ 9 p>agraph #h applies     #bd
             ,,it-#bgc;,r#b          a#e
  or ! taxpay] makes an elec;n z 4cuss$
  9 p>agraphs #aj 6#ae4 ,) respect 6a
  =giva# loan1 if x is lat] e/abli%$ t !
  am.t (! loan 6be =giv5 is less ?an !
  am.t 9clud$ 9 ! debtor's 9come "u
  p>agraph #ab7#a77x7 &! debtor is leg,y
  obligat$ 6repay ! di6];e1 ! taxpay] is
  5titl$ 6a deduc;n "u p>agraph
  #bj7#a77hh7 9 ! ye> 9 : ! am.t is s
  repd 7see p>agraph #bf74 ,! fact t a
  loan is 9t]e/-free or t ! rate ( 9t]e/
  on ! loan is less ?an ! exi/+ -m]cial
  rate ( 9t]e/ w n norm,y cause a loan
  6be 3sid]$ z assi/.e =! purpose (
  p>agraph #ab7#a77x74 ,) respect 6a
  pay;t 0a gu>antor1 if ! debtor is
  leg,y obligat$ 6repay ! gu>antor1 a
  deduc;n "u p>agraph #bj7#a77hh7 is
  likewise availa# 6! debtor =! ye> !
  repay;t is made4



                                     #be
      ,tax cr$its & deduc;ns f tax   b#e
             7p>agraph #ag7
    
#ag4 ,f$]al & prov9cial tax cr$its &
  deduc;ns f tax : >e 9 ! nature (
  9duce;ts1 or : >e rcvd z assi/.e =!
  co/ ( prop]ty or an exp5se1 >e 9clud$
  9 9come "u p>agraph #ab7#a77x7 9 ! ye>
  rcvd un.s "o (! excep;ns 4cuss$ 9
  p>agraph #h applies4 ,! f$]al small
  busi;s deduc;n is an example (a
  deduc;n f tax t is nei an 9duce;t nor
  assi/.e =! co/ (a prop]ty or exp5se &
  ?us1 is n 9clud$ 9 9come "u p>agraph
  #ab7#a77x74 ,a tax cr$it or deduc;n f
  tax is 3sid]$ 6be rcvd 7& "!=e 9clud$
  9 9come if x is an 9duce;t or assi/.e
  9 respect (! co/ ( prop]ty or an
  exp5se7 at ! e>lie/ ( :5 x is appli$3
  --6reduce a taxpay]'s tax 9/al;t
    paya#1 &
  --6cr1te or 9cr1se a tax refund or
    6reduce tax liabil;y =a tax,n ye>4
  
                                     #bf
             ,,it-#bgc;,r#b          c#e
  ,note t al? subsec;ns #abe.d7#e7 &
  #abe.e7#e7 deem ! tax cr$its 9 respect
  ( film or video produc;ns 6be assi/.e
  =! purpose ( p>agraph #ab7#a77x71 ^!
  provi.ns 7 5act$ 6e/abli% ! tim+ (!
  receipt (! assi/.e = all purposes (!
  ,9come ,tax ,act4 ,9 3tra/ 6! g5]al
  tim+ rule describ$ abv1 0virtue (
  subsec;ns #abe.d7#e7 & #abe.e7#e71 tax
  cr$its rcvd "u sec;ns #abe.d & #abe.e
  >e alw 3sid]$ 6be rcvd 2f ! 5d (!
  tax,n ye> 6: ! cr$its p]ta94 ,! lack (
  s* a deem+ provi.n 9 respect ( o!r tax
  cr$its or deduc;ns f tax does n m1n t
  s* am.ts >e n 3sid]$ 6be gov]n;t
  assi/.e4

        ,refunds 7p>agraph #ah7
    
#ah4 ,a refund ( an am.t t 0 deduct$ z
  an exp5se 9 a prior ye> cd 2 9clud$ 9
  9come "u p>agraph #ab7#a77x7 reg>d.s (
  :e!r x c 2 3sid]$ z an 9duce;t or
  assi/.e 7)9 ! ord9>y m1n+ ( ^!     #bg
             ,,it-#bgc;,r#b          d#e
  t]ms74 ,= example1 :5 a taxpay] rcvs a
  refund ( tax af #aiij : 0 deduct$ z an
  exp5se 9 a prior ye>1 ! am.t (! refund
  is 9clud$ 9 9come "u p>agraph
  #ab7#a77x7 9 ! ye> ! refund is rcvd 6!
  ext5t t an assess;t or reassess;t (
  ano!r tax,n ye> has n be5 issu$ 6apply
  ! refund z a reduc;n 9 ! co/ ( prop]ty
  or ! am.t ( an exp5se deduct$ 9 t o!r
  tax,n ye>4 ,simil>ly1 c.t]vail+ &
  anti-dump+ duties paya# 0a taxpay] af
  ,febru>y #bc1 #aiih >e deducti# "u
  p>agraph #bj7#a77vv71 & any am.t : is
  lat] refund$ is requir$ 6be 9clud$ 9
  9come "u p>agraph #ab7#a77z4#f74

           ,"pn]%ips & ,tru/s
             7p>agraph #ai7
    
#ai4 ,subsec;n #ab7#b.a7 (! ,act deems
  gov]n;t assi/.e rcvd 0a b5efici>y (a
  tru/ or 0a memb] (a "pn]%ip 6be rcvd
  0! tru/ or "pn]%ip :5 x is provid$ 9
  respect ( an exp5se (1 or          #bh
             ,,it-#bgc;,r#b          e#e
  activ;y c>ri$ on by1 ! tru/ or
  "pn]%ip1 or 9 respect (! co/ ( prop]ty
  [n$ 0! tru/ or "pn]%ip4 ,simil>ly1 ":
  a b5efici>y (a tru/ or a memb] (a
  "pn]%ip rcvs or is 5titl$ 6rcv gov]n;t
  assi/.e t c r1sonably 2 3sid]$ 6be 9
  respect (1 or =! acquisi;n (1 prop]ty
  ! co/ ( : 0 an eligi# capital
  exp5diture (! tru/ or "pn]%ip1
  subsec;n #ad7#aa7 (! ,act deems t
  assi/.e 6be rcvd 0! tru/ or "pn]%ip4
  ,:5 subsec;n #ab7#b.a7 applies1 !
  assi/.e is 9clud$ 9 ! 9come (! "pn]%ip
  or tru/ "u p>agraph #ab7#a77x7 un.s "o
  (! excep;ns 9 p>agraph #h applies 9
  respect (! tru/ or "pn]%ip4 ,see
  p>agraph #f =a 4cus.n (! tax tr1t;t (
  assi/.e provid$ 9 respect ( eligi#
  capital exp5ditures4




                                     #bi
      ,assi/.e ,provid$ 9 ,respect   f#e
          ( ,res\rce ,prop]ty
             7p>agraph #bj7
    
#bj4 ,! ,9come ,tax ,act requires
  taxpay]s 9 ! res\rce 9du/ry 6ma9ta9
  sep>ate a3.ts1 or pools1 = c]ta9
  explor,n & develop;t exp5ses4 ,!
  exp5ses : m/ 2 a3.t$ = on a pool$
  basis 9clude ,canadian explor,n
  exp5ses1 ,canadian develop;t exp5ses1
  & ,canadian oil & gas prop]ty exp5ses4
  ,any assi/.e : a taxpay] rcvs1 or is
  5titl$ 6rcv1 = ^! exp5ses is g5],y
  deduct$ f ! relevant pool4 ,s* assi/.e
  is def9$ 9 subsec;n #ff7#ae7 & 9cludes
  any =m ( f9ancial aid rcvd or receiva#
  f any gov]n;t1 municipal;y or o!r
  public au?or;y = explor,n & develop;t
  exp5ses 9curr$4 ,? assi/.e al reduces
  ! am.t : c 2 ren\nc$ 6! hold]s ( fl[-
  "? %>es "u subsec;ns #ff7#ab.f7 &
  7#ab.fb74 ,6! ext5t ! assi/.e reduces
  a pool1 x is n 9clud$ 9 9come "u
  p>agraph #ab7#a77x74 ,! am.t (     #cj
             ,,it-#bgc;,r#b          g#e
  any assi/.e : ! taxpay] is leg,y
  obligat$ 6repay is a4$ back 6! pool :5
  x is repd4
--------------------------------------#f
          ,9ve/;t ,tax ,cr$it
             7p>agraph #ba7
    
#ba4 ,an 9ve/;t tax cr$it norm,y reduces
  ! co/ (! relat$ exp5diture = tax
  purposes 7e4g41 ! co/ or capital co/
  (! prop]ty 6: ! 9ve/;t tax cr$it
  relates or ! undepreciat$ capital co/
  (! relevant class ( deprecia# prop]ty
  9 : ! prop]ty 2l;gs74 ,6! ext5t t s* a
  reduc;n does n take place 7= example1
  :5 ! tax cr$it relates 6non-deprecia#
  prop]ty t 0 acquir$ & 4pos$ ( 9 tax,n
  ye>s prec$+ ! ye> 9 : ! cr$it is
  claim$71 ! am.t (! 9ve/;t tax cr$it is
  9clud$ 9 9come "u p>agraph #ab7#a77t7
  =! tax,n ye> foll[+ ! lat] (! ye> 9 :
  ! cr$it is claim$ &! ye> 9 : ! relat$
  exp5diture took place4
                                     #ca
          ,gds & ,s]vices ,tax       a#f
             7p>agraph #bb7
    
#bb4 ,! ,excise ,tax ,act provides an
  9put tax cr$it 6a p]son :o is regi/]$
  =! purpose ( collect+ & remitt+
  ,,gst/,,hst 7! gds & s]vices tax or
  h>moniz$ sales tax7 on ! gds & s]vices
  provid$ 0t p]son 9 ! c\rse (a -m]cial
  activ;y4 ,g5],y1 ! 9put tax cr$it is
  equal 6! ,,gst/,,hst pd or paya# =!
  pur*ase (a prop]ty1 supply or s]vice
  :1 9 turn1 is us$ 6provide a gd or
  s]vice 9 ! c\rse ( t p]son's busi;s4
  ,9 a4i;n1 v>i\s rebates ( ,,gst/,,hst
  7e4g41 =! pur*ase ( an 9dividual's
  resid;e f a build]7 >e availa# "u !
  ,excise ,tax ,act4 ,=! purposes ( ?
  bullet91 subsec;n #bdh7#af7 (! ,act
  deems ! am.t claim$ z an 9put tax
  cr$it or a rebate 6be gov]n;t assi/.e
  rcvd 0! taxpay]4 ,?us1 = example1 !
  am.t ( any 9put tax cr$it or rebate :
  is deem$ 6be rcvd 0a taxpay]3
                                     #cb
             ,,it-#bgc;,r#b          b#f
  --is 9clud$ 9 9come "u p>agraph
    #ab7#a77x7 6! ext5t x relates
    6,,gst/,,hst pd = an \tlay or
    exp5se2
  --reduces ! capital co/ ( deprecia#
    prop]ty "u subsec;n #ac7#g.a7 6!
    ext5t x relates 6,,gst/,,hst pd = s*
    prop]ty2 or
  --reduces ! ,,acb ( non-deprecia#
    capital prop]ty "u p>agraph
    #ec7#b77k7 6! ext5t x relates
    6,,gst/,,hst pd = s* prop]ty4
  
     ,9duce;ts 6,m$ical ,practi;n]s
             7p>agraph #bc7
    
#bc4 ,gov]n;t organiz,ns may provide
  f9ancial 9c5tives 6recruit h1l? c>e
  profes.nals 6practice 9 designat$
  "us]vic$ >1s4 ,s* grants >e 9clud$ 9
  9come "u p>agraph #ab7#a77x7 :5 n"o (!
  excep;ns describ$ 9 p>agraph #h
  applies4
                                     #cc
      ,assi/.e f a ,=eign ,gov]n;t   c#f
             7p>agraph #bd7
    
#bd4 ,subsec;n #ac7#g.a7 or #ac7#ba71 or
  p>agraph #ec7#b77k7 c al apply :5
  assi/.e is rcvd f a =eign gov]n;t =!
  acquisi;n ( deprecia# or non-deprecia#
  capital prop]ty4 ,h["e1 :5 ! am.t (
  assi/.e reduces ! 9come tax pd 6a
  =eign c.try1 x may reduce ! =eign tax
  cr$it availa# 9 ,canada "u sec;n #abf4
  ,6! ext5t t a reduc;n 9 =eign 9come
  tax paya# reduces ! am.t (! =eign tax
  cr$it availa# 6be appli$ 6tax paya# 9
  ,canada1 x is n 3sid]$ 6be assi/.e &
  does n reduce ! co/ (! prop]ty nor is
  x requir$ 6be 9clud$ 9 9come "u
  p>agraph #ab7#a77x74

     ,natural ,4a/]s 7p>agraph #be7
    
#be4 ,:5 a natural 4a/] /rikes1 gov]n;t
  assi/.e may 2 rcvd 9 respect (! op],n
  (a busi;s1 prop]ty held =! purpose (
  e>n+ 9come1 or a p]sonal loss or   #cd
             ,,it-#bgc;,r#b          d#f
  exp5diture4 ,g5],y1 pay;ts rcvd 0an
  9dividual f a gov]n;t = p]sonal losses
  & exp5ses 9curr$ z a result (a 4a/]1
  9clud+ pay;ts = tempor>y h\s+ & m1ls
  dur+ ! 4a/]1 >e n 9clud$ 9 9come = tax
  purposes4 ,z well1 gov]n;t -p5s,n rcvd
  = loss or damage 6p]sonal-use prop]ty
  does n ord9>ily result 9 any tax
  3sequ;es4 ,h["e1 assi/.e rcvd 9
  respect ( capital prop]ty1 :e!r
  busi;s-relat$ or p]sonal1 is ord9>ily
  nett$ ag/ ! co/ (! repairs made 6t
  prop]ty or1 if x relates 6! replace;t
  ( t prop]ty1 x norm,y reduces ! co/ or
  capital co/ (! prop]ty s acquir$4 ,:5
  gov]n;t assi/.e is rcvd = damag$
  9v5tory 7e4g41 spoil$ milk1 de/roy$ or
  damag$ trees71 ! am.t w 2 9clud$ 9
  9come "u p>agraph #ab7#a77x7 6! ext5t
  t ! assi/.e does n reduce ! am.t (
  co/s 9curr$ relat$ 6t damage4


                                     #ce
          ,repay;ts ( ,assi/.e       e#f
    
         ,g5]al 7p>agraph #bf7
    
#bf4 ,a deduc;n is availa# "u p>agraph
  #bj7#a77hh7 9 respect (! repay;t (
  gov]n;t assi/.e t 0 previ\sly 9clud$ 9
  9come "u p>agraph #ab7#a77x71 provid$
  t ! taxpay] is "u a legal oblig,n
  6repay s* an am.t4 ,a deduc;n may al 2
  availa# =! repay;t ( assi/.e t 0 n
  9clud$ 9 9come "u p>agraph #ab7#a77x7
  provid$ ! r1son x 0 n 9clud$ 9 9come
  is 2c x reduc$ ! am.t ( an \tlay or
  exp5se t 0 o!rwise deducti# 9 -put+
  9come =a tax,n ye> &! taxpay] 0 "u a
  legal oblig,n 6repay ! am.t4 ,= ?
  purpose1 an \tlay or exp5se does n
  9clude an am.t : relates 6! co/ (
  prop]ty or 6an am.t : is1 or wd be1
  deducti# "u sec;n #ff1 #ff.a1 #ff.b or
  #ff.d1 if ! 9come-bas$ limit,ns on
  deduc;ns "u ^? sec;ns 7 n tak5 96a3.t4

                                     #cf
         ,repay;ts ( assi/.e 9       f#f
        respect ( eligi# capital
       exp5ditures 7p>agraph #bg7
    
#bg4 ,:5 a taxpay] repays all or "p (!
  assi/.e rcvd 9 respect ( an eligi#
  capital exp5diture pursuant 6a legal
  oblig,n 6d s1 ! am.t (! eligi# capital
  exp5diture is 9cr1s$ 6! ext5t (!
  repay;t "u p>agraph #ad7#aj77b74 ,z
  /at$ 9 p>agraph #f1 ! am.t (a
--------------------------------------#g
  taxpay]'s eligi# capital exp5diture
  7&! result+ cumulative eligi# capital7
  c *ange z a result (! receipt or
  repay;t ( assi/.e z l;g z ! taxpay]
  3t9ues 6c>ry on ! busi;s4 ,:5 !
  repay;t ( an am.t t ! taxpay] 0 leg,y
  obligat$ 6repay relates 6assi/.e rcvd
  9 respect ( an eligi# capital
  exp5diture =a busi;s : has c1s$ at !
  "t (! repay;t1 p>agraph #bj7#a77hh4#a7
  provides =a deduc;n ( ?ree qu>t]s
  7#c ov] #d7 (! am.t s repd4
                                     #cg
         ,repay;ts ( assi/.e 9       a#g
        respect ( non-deprecia#
     capital prop]ty 7p>agraph #bh7
    
#bh4 ,! repay;t ( assi/.e rcvd 9 respect
  (a capital prop]ty 7o!r ?an deprecia#
  prop]ty71 pursuant 6a legal oblig,n 6d
  s1 decr1ses ! am.t (! reduc;n (! ,,acb
  (! prop]ty "u p>agraph #ec7#b77k71 or
  --": ! taxpay] has made an elec;n "u
  subsec;n #ec7#b.a7--subp>agraph
  #ec7#b77s77ii74 ,9 e6ect1 ! ,,acb (!
  prop]ty is 9cr1s$ 0virtue (! repay;t4
  ,if ! prop]ty is 4pos$ ( 2f ! assi/.e
  is repd1 "! is no provi.n 6adju/ !
  capital ga9 or loss previ\sly r1liz$
  on ! 4posi;n ( t prop]ty2 h["e1 ! am.t
  (! repay;t is deem$ 6be a capital loss
  "u subsec;n #ci7#ac74 ,if ! prop]ty is
  4pos$ ( 2f ! assi/.e is rcvd1 &
  3sequ5tly ! assi/.e is 9clud$ 9 9come
  "u p>agraph #ab7#a77x7 2c x is no l;g]
  possi# 6adju/ ! ,,acb (! prop]ty1 !n !
  am.t ( any subsequ5t repay;t ( assi/.e
                                     #ch
             ,,it-#bgc;,r#b          b#g
  may 2 deduct$ f 9come "u p>agraph
  #bj7#a77hh74

     ,repay;ts ( assi/.e 9 respect
          ( deprecia# prop]ty
             7p>agraph #bi7
    
#bi4 ,! tax tr1t;t ( repay;ts ( assi/.e
  rcvd 9 respect ( deprecia# prop]ty
  dep5ds on :e!r ! taxpay] / [ns !
  prop]ty at ! "t ! assi/.e is repd4 ,:5
  ! taxpay] / [ns ! prop]ty & repays all
  or "p (! assi/.e pursuant 6a legal
  oblig,n 6d s1 ! am.t repd 9cr1ses !
  capital co/ (! prop]ty "u p>agraph
  #ac7#g.a77d71 or--in ^? cases ": !
  taxpay] has made a subsec;n #ac7#g.d7
  elec;n--"u p>agraph #ac7#g.d77b74 ,a
  repay;t : is made af ! relat$
  deprecia# prop]ty has be5 4pos$ (
  9cr1ses ! ,,ucc (! relevant class (
  deprecia# prop]ty 0r1son ( v>ia# ;,c
  or ;,d (! =mula 9 subsec;n #ac7#ba71
  provid$ t ! taxpay] is "u a        #ci
             ,,it-#bgc;,r#b          c#g
  legal oblig,n 6repay t am.t4 ,:5 !
  repay;t is made af ! taxpay] c1ses
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