,CANADA ,CU/OMS                       #A
& ,REV5UE ,AG5CY

              ,9COME ,TAX
          ,9T]PRET,N ,BULLET9
    
,SUBJECT3 ,9COME ,TAX ,ACT
  ,CAPITAL ,CO/ ,ALL[.E--,G5]AL ,-;TS
,NUMB]3 ,,IT-#BHE;,R#B
,DATE3 ,M>* #CA1 #AIID
,REF];E3 ,P>AGRAPH #BJ7#A77A7 7AL
  P>AGRAPH #AH7#A77B7 & ,"P ,,XI (!
  ,9COME ,TAX ,REGUL,NS7

               ,APPLIC,N
    
  ,? BULLET9 C.ELS & REPLACES ,9T]PRET,N
,BULLET9 ,,IT-#BHE;,R DAT$ ,OCTOB] #AA1
#AIHE &! ,SPECIAL ,REL1SE TO
,,IT-#BHE;,R DAT$ ,M>* #CA1 #AIHG1 Z
WELL Z ! FOLL[+ BULLET9S 7RELEVANT -;T>Y
HAS BE5 9CORPORAT$ 96? BULLET973
  ,,IT-#EJ;,R ,CAPITAL ,CO/ ,ALL[.ES--
    ,DATE ( ,ACQUISI;N ( ,DEPRECIA#
    ,PROP]TY                          #A
             ,,IT-#BHE;,R#B          A#A
  ,,IT-#AGD;,R ,CAPITAL ,CO/ ,ALL[.E--
    ,M1N+ ( 8,CAPITAL ,CO/ ( ,PROP]TY0
  ,,IT-#BJE ,CAPITAL ,CO/ ,ALL[.E--
    ,CAPITAL ,CO/ ( ,PROP]TY 9 A ,=EIGN
    ,C.TRY

                ,SUMM>Y
    
  ,? BULLET9 4CUSSES ! CAPITAL CO/
ALL[.E SY/EM 9 G5]AL T]MS4 ,CAPITAL CO/
ALL[.E 7,,CCA7 REPLACES A3.T+ DEPRECI,N
= 9COME TAX PURPOSES4 ,! T]M 8CAPITAL
CO/0 G5],Y M1NS ! ACTUAL CO/ (A
DEPRECIA# PROP]TY2 H["E1 "! >E _M SEC;NS
(! ,9COME ,TAX ,ACT T C *ANGE ! CAPITAL
CO/1 "S ( : >E 4CUSS$ 9 ? BULLET94 ,A
LI/+ ( O!R BULLET9S T 4CUSS ! DET]M9,N (
CAPITAL CO/ C 2 F.D AT ! 5D ( ? BULLET94
,? BULLET9 AL 4CUSSES ! DATE A DEPRECIA#
PROP]TY IS 3SID]$ 6H BE5 ACQUIR$ & MAKES
REF];E 6! POSSI# APPLIC,N (! 8AVAILA# =
USE RULES04 ,^! RULES MAY DELAY A ,,CCA
CLAIM = UP 6TWO YE>S IF A DEPRECIA#
PROP]TY IS ACQUIR$ B IS N 3SID]$      #B
             ,,IT-#BHE;,R#B          B#A
6BE 8AVAILA# = USE04 ,! 8#EJ@3P RULE01 :
MAY RE/RICT CAPITAL CO/ ALL[.E 9 ! YE>
AN ASSET IS ACQUIR$1 IS AL 4CUSS$4 ,A
REF];E 6DEPRECIA# PROP]TY 9 ? BULLET9
DOES N 9CLUDE F>M+ OR FI%+ ASSETS
ACQUIR$ 2F ,JANU>Y #A1 #AIGB1 &
CLASSIFI$ = DEPRECI,N PURPOSES "U ,"P
,,XVII (! ,REGUL,NS4 ,C]TA9 TYPES (
ASSETS &! CLASSES 96: !Y FALL = CAPITAL
CO/ ALL[.E PURPOSES >E 4CUSS$ 9 ORD]
--------------------------------------#B
9T]PRET,N BULLET9S LI/$ AT ! 5D ( ?
BULLET94 ,! ISSUES 9 ? BULLET9 >E 4CUSS$
"U ! FOLL[+ H1D+S & "U ! P>AGRAPHS NOT$3

                             ,P>AGRAPHS4
,G5]AL """""""""""""""""""""""""""" #A-B
,CLASSES ( ,DEPRECIA# ,PROP]TY """" #C-G
,CAPITAL ,CO/ ( ,PROP]TY """"""""" #H-AB
,REDUC;N ( ,CAPITAL ,CO/--
  ,ASSI/.E OR ,9DUCE;TS """"""""" #AC-AD
,[N]%IP """"""""""""""""""""""""" #AE-BB

                                      #C
             ,,IT-#BHE;,R#B          A#B
#EJ@3P ,RULE--,PROP]TY ,ACQUIR$
  9 ! ,YE> """""""""""""""""""""" #BC-BE
,%ORT ,FISCAL ,P]IOD """"""""""""""" #BF
,O!R ,9T]PRET,N ,BULLET9S """"""" #BG-BH

          ,4CUS.N & ,9T]PRET,N
                 ,G5]AL
    
#A4 ,9 -PUT+ 9COME F A BUSI;S OR
  PROP]TY1 P>AGRAPH #AH7#A77B7 PROHIBITS
  ! DEDUC;N ( ANY \TLAY1 LOSS OR
  REPLACE;T ( CAPITAL1 PAY;T ON A3.T (
  CAPITAL OR ANY ALL[.E = DEPRECI,N1
  OBSOLESC;E OR DEPLE;N1 UN.S SPECIFIC,Y
  ALL[$ 9 ,"P ;,I (! ,ACT4 ,P>AGRAPH
  #BJ7#A77A7 ALL[S A DEDUC;N1 9 -PUT+ !
  9COME F A BUSI;S OR PROP]TY1 ( ANY
  AM.T ALL[$ 0,REGUL,N 9 RESPECT (!
  CAPITAL CO/ (A PROP]TY4 ,! AM.T T IS
  ALL[$ 0,REGUL,N IS REF]R$ 6Z 8CAPITAL
  CO/ ALL[.E0 7,,CCA74
#B4 ,"U ,"P ,,XI (! ,REGUL,NS1 DEPRECIA#
  PROP]TY IS GR\P$ 96PRESCRIB$ CLASSES T
  >E DESCRIB$ 9 ,S*$ULE ,,II (!       #D
             ,,IT-#BHE;,R#B          B#B
  ,REGUL,NS4 ,! MAXIMUM RATE ( ,,CCA
  ALL[$ IS PRESCRIB$ = EA* CLASS 9
  SUBSEC;N #AAJJ7#A7 (! ,REGUL,NS4 ,9
  MO/ CASES1 ,,CCA IS CALCULAT$ ON A
  DIM9I%+ BAL.E & EXPRESS$ Z A P]C5TAGE
  (! UNDEPRECIAT$ CAPITAL CO/ (! CLASS
  AT YE>-5D4 ,9 G5]AL T]MS1
  8UNDEPRECIAT$ CAPITAL CO/0 7,,UCC7 IS
  DEF9$ Z ! TOTAL CAPITAL CO/ ( ALL !
  PROP]TY 9 ! CLASS 7:E!R OR N / [N$71
  LESS ! TOTAL ,,CCA PREVI\SLY CLAIM$ =
  ALL YE>S &! NET PROCE$S 7OR CAPITAL
  CO/ IF LESS7 F 4POSI;NS 2F T "T (
  PROP]TY T 0 9CLUD$ 9 ! CLASS4 ,MO/
  ,,CCA RATES >E SET \ 9 P>AGRAPH
  #AAJJ7#A77A7 (! ,REGUL,NS1 :ILE !
  REMA9+ P>AGRAPHS ( SUBSEC;N #AAJJ7#A7
  (! ,REGUL,NS SET \ A NUMB] ( SPECIAL
  RATES APPLICA# 6SPECIFIC TYPES (
  PROP]TY & C]TA9 A4I;NAL A3EL]AT$
  ALL[.ES4 ,9 A4I;N 6! CLASSES SET \ 9
  ,S*$ULE ,,II1 C]TA9 SEP>ATE CLASSES >E
  PRESCRIB$ 0SEC;N #AAJA (! ,REGUL,NS4
  ,9 G5]AL1 A TAXPAY] MAY DEDUCT      #E
             ,,IT-#BHE;,R#B          C#B
  ANY AM.T UP 6! MAXIMUM AVAILA# =! YE>
  TAK+ 963SID],N ANY RE/RIC;NS S* Z
--------------------------------------#C
  ^? M5;N$ 9 #AB1 #AE & #BC 6#BF 2L OR
  RE/RIC;NS ON C]TA9 TYPES ( PROP]TY S*
  Z R5TAL OR L1S+ PROP]TY 7SUBSEC;NS
  #AAJJ7#AA7 TO 7#BJ7 (! ,REGUL,NS7 OR
  SPECIFI$ L1S+ PROP]TY 7SUBSEC;NS
  #AAJJ7#A.A7 TO 7#A.C7 (! ,REGUL,NS74
  ,,CCA T IS AVAILA# B N CLAIM$ 9 A YE>
  IS N 8C>RI$ =W>D0 6! NEXT YE>4 ,H["E1
  ANY AVAILA# ,,CCA N CLAIM$ 9 A YE>
  REMA9S Z "P (! ,,UCC BAL.E = ,,CCA
  CLAIMS 9 FUTURE YE>S4

     ,CLASSES ( ,DEPRECIA# ,PROP]TY
    
#C4 ,A PROP]TY IS N DEPRECIA# PROP]TY &
  ,,CCA _C 2 CLAIM$ = X UN.S X FITS )9 !
  DESCRIP;N (A CLASS 9 ,S*$ULE ,,II OR
  ,"P ,,XI (! ,REGUL,NS4 ,A TANGI#
  CAPITAL PROP]TY N SPECIFIC,Y COV]$ 9
  ANY O!R CLASS MAY N 2 PLAC$ 9 :AT
  APPE>S 6BE ! MO/ APPROPRIATE        #F
             ,,IT-#BHE;,R#B          A#C
  CLASS2 R1 X IS 9CLUD$ 9 CLASS #H (
  ,S*$ULE ,,II1 UN.S X IS EXCLUD$ 0!
  SPECIFIC EXCEP;NS "!9 OR IS EXCLUD$
  0SEC;N #AAJB (! ,REGUL,NS4 ,PROP]TY T
  IS EXCLUD$ IS N DEPRECIA# PROP]TY & NO
  ,,CCA IS AVAILA# = T PROP]TY4 ,"S (!
  EXCLU.NS "U SEC;N #AAJB (! ,REGUL,NS
  >E 4CUSS$ 9 ! CURR5T V].N ( ,,IT-#ABH1
  ,CAPITAL ,CO/ ,ALL[.E--,DEPRECIA#
  ,PROP]TY4
#D4 ,C]TA9 ^WS US$ 9 ! ,REGUL,NS
  6DESCRIBE PROP]TIES MAY H WID] M1N+S
  ?AN ^? ORD9>ILY ATTRIBUT$ 6!M4 ,=
  EXAMPLE1 8AUTOMOTIVE EQUIP;T0 9 CLASS
  #AJ ( ,S*$ULE ,,II 9CLUDES \TBO>D
  MOTORS & AIR CU%ION VEHICLES POPUL>LY
  "KN Z 8HOV]CRAFT04 ,O!R EXAMPLES APPE>
  9 O!R 9T]PRET,N BULLET9S ON ! SUBJECT
  ( CAPITAL CO/ ALL[.E 7SEE #BG 2L74
#E4 ,! DESCRIPTIVE PHRASE 8PROP]TY T WD
  O!RWISE 2 9CLUD$ IN0 APPE>S 9 S"EAL
  CLASSES 9 ,S*$ULE ,,II1 : CD L1D
  6UNC]TA9TY Z 6! CLASS 9 : A "PICUL>
  PROP]TY MAY 2L;G4 ,IF A PROP]TY     #G
             ,,IT-#BHE;,R#B          B#C
  IS DESCRIB$ 9 M ?AN "O CLASS &!
  DESCRIPTIVE PHRASE M5;N$ ABV APPE>S 9
  ONLY "O ( ^? CLASSES1 ! PROP]TY M/ 2
  9CLUD$ 9 ! CLASS 9 : ! PHRASE APPE>S4
  ,IF1 H["E1 ! DESCRIPTIVE PHRASE APPE>S
  9 M ?AN "O ( ^? CLASSES 9 : ! PROP]TY
  IS DESCRIB$1 ! TAXPAY] MAY *OOSE F
  AM;G ^? 9 : ! PHRASE APPE>S1 PROVID+ T
  ! O!R REQUIRE;TS (! *OS5 CLASS >E MET4
  ,= EXAMPLE1 A TAXPAY] MAY *OOSE
  69CLUDE AIR POLLU;N EQUIP;T ACQUIR$ 9
  3NEC;N ) M9+ ACTIVITIES 9 CLASS #BG R
  ?AN CLASS #DA4 ,AL? ORD9>ILY 9 S*
  CIRCUM/.E !
--------------------------------------#D
  PROP]TY IS 9CLUD$ 9 ! CLASS ALL[+ !
  GRT] ,,CCA1 ! TAXPAY] MAY *OOSE 6PLACE
  X 9 ANO!R CLASS 6AVOID IMM RECAPTURE (
  ,,CCA ON ! 4POSI;N ( O!R PROP]TY ( T
  CLASS4
#F4 ,! DESCRIPTIVE PHRASE1 8N 9CLUD$ 9
  ANY O!R CLASS01 APPE>S FREQU5TLY 9
  ,S*$ULE ,,II4 ,A PROP]TY MAY 2 9CLUD$
  9 A CLASS 9 : S* PHRASE APPE>S      #H
             ,,IT-#BHE;,R#B          A#D
  ONLY IF X IS N DESCRIB$ 9 ANO!R CLASS
  )9 ,S*$ULE ,,II OR ANY SEP>ATE CLASS
  E/ABLI%$ "U ,"P ,,XI (! ,REGUL,NS4 ,IF
  ! DESCRIPTIVE PHRASE APPE>S 9 ALL
  CLASSES 9 : A PROP]TY IS DESCRIB$1 !
  TAXPAY] MAY *OOSE F AM;G !M4
#G4 ,SEC;N #AAJC (! ,REGUL,NS 3TA9S
  ELEC;NS T1 "U C]TA9 3DI;NS1 P]MIT A
  TAXPAY] 6TRANSF] PROP]TY O!RWISE
  9CLUD$ 9 "O CLASS 6ANO!R CLASS4 ,=
  DETAILS ON ^! ELEC;NS SEE ! CURR5T
  V].N ( ,,IT-#CBG1 ,CAPITAL ,CO/
  ,ALL[.E--,ELEC;NS "U ,REGUL,N #AAJC4

        ,CAPITAL ,CO/ ( ,PROP]TY
    
#H4 ,! T]M 8CAPITAL CO/ ( PROP]TY0 G5],Y
  M1NS ! FULL CO/ 6! TAXPAY] ( ACQUIR+ !
  PROP]TY & 9CLUDES3
  7A7 LEGAL1 A3.T+1 5G9E]+ OR O!R FEES
    9CURR$ 6ACQUIRE ! PROP]TY2 &
  7B7 9 ! CASE (A PROP]TY A TAXPAY]
    MANUFACTURES =! TAXPAY]'S [N USE1 X
    9CLUDES MAT]IAL1 LAB\R & OV]H1D   #I
             ,,IT-#BHE;,R#B          B#D
    CO/S R1SONABLY ATTRIBUTA# 6!
    PROP]TY1 B NO?+ = ANY PR(IT : MI<T H
    BE5 E>N$ _H ! ASSET BE5 SOLD4
  
  ,9 A4I;N1 0VIRTUE ( SUBSEC;NS
  #AH7#C.A7 6#AH7#C.G71 ! CAPITAL CO/ (A
  BUILD+ 9CLUDES C]TA9 \TLAYS OR EXP5SES
  7-MONLY REF]R$ 6Z 8S(T CO/S07 T >E
  CO/S ATTRIBUTA# 6! P]IOD (1 & RELAT+
  TO1 ! 3/RUC;N1 R5OV,N OR ALT],N (!
  BUILD+ OR S* CO/S RELAT$ 6! [N]%IP1
  DUR+ T P]IOD1 ( L& SUBJAC5T 6! BUILD+1
  OR L& 3TIGU\S 6! L& SUBJAC5T 6! BUILD+
  T IS US$ 7OR 9T5D$ 6BE US$7 =A P>K+
  >EA1 DRIVEWAY1 Y>D1 G>D5 OR ANY SIMIL>
  USE & IS NEC =! USE 7OR 9T5D$ USE7 (!
  BUILD+4

,NOTE3
  ,IF ! DRAFT LEGISL,N REL1S$ 0! ,M9I/]
  ( ,F9.E ON ,AUGU/ #CJ1 #AIIC IS 5ACT$
  96LAW Z CURR5TLY PROPOS$1 NEW SUBSEC;N
  #AC7#CC7 W PROVIDE T1 = GRT] C]TA9TY1
  ": A P]SON ACQUIRES A DEPRECIA#    #AJ
             ,,IT-#BHE;,R#B          C#D
  PROP]TY 7! ACQUIR$ PROP]TY7 = 3SID],N
  T 9CLUDES A TRANSF] ( PROP]TY 7=
  EXAMPLE1 A TRADE-IN71 ! POR;N (! CO/
  6! P]SON (! ACQUIR$
--------------------------------------#E
  PROP]TY ATTRIBUTA# 6! TRANSF] % N
  EXCE$ ! FAIR M>KET VALUE (! TRANSF]R$
  PROP]TY4 ,? NEW SUBSEC;N W APPLY
  6DEPRECIA# PROP]TY ACQUIR$ AF ,NOVEMB]
  #AIIB4

#I4 ,IF A PROP]TY IS ACQUIR$ 9 A
  TRANSAC;N REQUIR+ PAY;T 9 A =EIGN
  CURR5CY1 9CLUD+ PROP]TY SITUAT$ 9 A
  =EIGN C.TRY & US$ 6E>N 9COME1 !
  HI/ORICAL CO/ (! PROP]TY %D 2 EXPRESS$
  9 ,CANADIAN DOLL>S4 ,G5],Y1 ! RATE (
  EX*ANGE 9 E6ECT ON ! DATE ( ACQUISI;N
  %D 2 US$ 63V]T ! AM.T 6,CANADIAN
  DOLL>S4 ,H["E1 PAY;TS ON A3.T (!
  PUR*ASE PRICE (! PROP]TY MADE .2F !
  DATE ( ACQUISI;N %D 2 3V]T$ 6,CANADIAN
  DOLL>S US+ ! EX*ANGE RATE ON ! DATES (
  S* PAY;TS4 ,=EIGN EX*ANGE GA9S &   #AA
             ,,IT-#BHE;,R#B          A#E
  LOSSES ON PAY;TS MADE .AF ! DATE (
  ACQUISI;N D N =M "P (! CAPITAL CO/ (!
  PROP]TY4
#AJ4 ,9 CASES ": A TAXPAY] 2COMES A
  RESID5T ( ,CANADA & [NS DEPRECIA#
  PROP]TY 9 A =EIGN C.TRY1 : IS PROP]TY
  T 0 & 3T9UES 6BE US$ 6E>N 9COME 9 T
  =EIGN C.TRY1 ! CAPITAL CO/ ( T
  DEPRECIA# PROP]TY = ,,CCA PURPOSES IS
  ! HI/ORICAL CO/ (! PROP]TY 3V]T$
  6,CANADIAN DOLL>S 9 ! MANN] EXPLA9$ 9
  #I ABV4 ,! CAPITAL CO/ W N 2 REDUC$
  0ANY DEPRECI,N ALL[.ES RECOGNIZ$ 0T
  =EIGN C.TRY4

,NOTE3
  ,IF ! DRAFT LEGISL,N REL1S$ 0! ,M9I/]
  ( ,F9.E ON ,AUGU/ #CJ1 #AIIC IS 5ACT$
  96LAW Z CURR5TLY PROPOS$1 ! CAPITAL
  CO/ ( S* DEPRECIA# PROP]TY = ,,CCA
  PURPOSES W1 0VIRTUE ( PROPOS$
  P>AGRAPHS #ABH.A7#A77B7 & 7C71 2 !
  FAIR M>KET VALUE (! PROP]TY IMMLY 2F !
  "T IMMLY 2F ! TAXPAY] 2COMES A     #AB
             ,,IT-#BHE;,R#B          B#E
  RESID5T ( ,CANADA4 ,? RESULTS F ! FACT
  T SUBSEC;N #ABH.A7#A7 W APPLY =
  PURPOSES (! ,ACT1 :ILE SUBSEC;N
  #DH7#C7 7REP1L$ 0! DRAFT LEGISL,N7
  APPLI$ = PURPOSES ( SUBDIVI.N ;C (
  DIVI.N ,B4 ,X %D AL 2 NOT$ T "U
  PROPOS$ P>AGRAPH #ABH.A7#A77A71 ": A
  TAXPAY] IS A CORPOR,N OR A TRU/1 !
  TAXPAY]'S TAX,N YE> % 2 DEEM$ 6H 5D$
  IMMLY 2F 2COM+ A RESID5T ( ,CANADA &A
  NEW TAX,N YE> % 2 DEEM$ 6H -M;ED AT !
  "T ! TAXPAY] 2COMES RESID5T4 ,^!
  AM5D;TS W APPLY AF #AIIB2 H["E1 !Y MAY
  APPLY E>LI] 9 RESPECT (A CORPOR,N
  ELECT+ 6BE SUBJECT 6PROPOS$ NEW
  SUBSEC;N #BEJ7#E.A7 7IN : CASE1 !Y W
  APPLY F ! CORPOR,N'S "T ( 3T9U,N74

#AA4 ,IF AN OLD BUILD+ US$ 0A TAXPAY] =A
  L;G "T 6E>N 9COME IS DEMOLI%$ 6BUILD A
  NEW "O1 ! CO/ ( DEMOLI;N IS N 3SID]$
  6BE "P (! CAPITAL CO/ (! NEW BUILD+
  7UN.S !
                                     #AC
             ,,IT-#BHE;,R#B           #F
  TAXPAY] S DESIRES71 B MAY 2 DEDUCT$ Z
  AN EXP5SE 9 ! YE>4 ,! TAX TR1T;T (!
  CO/S ( DEMOLI%+ A BUILD+ 9CID5T,Y
  ACQUIR$ ON OBTA9+ A SITE IS 4CUSS$ 9 !
  CURR5T V].NS ( ,,IT-#ABH1 ,CAPITAL
  ,CO/ ,ALL[.E--,DEPRECIA# ,PROP]TY &
  ,,IT-#DHE1 ,CO/ ( ,CLE>+ OR ,LEVELL+
  ,L&4
#AB4 ,": A BUILD+ OR O!R /RUCTURE IS 2+
  ERECT$ 0OR =A TAXPAY] ON L& [N$ 0!
  TAXPAY] OR ": A TAXPAY] ERECTS1 MAKES
  AN A4I;N OR MAKES ALT],NS 6A BUILD+ OR
  O!R /RUCTURE 6: P>AGRAPH #AAJB7#E77A7
  (! ,REGUL,NS APPLIES1 ! TAXPAY] IS
  3SID]$ 6H ACQUIR$ A BUILD+ OR O!R
  /RUCTURE1 AT ANY "PICUL> "T1 6! EXT5T
  (3
  7A7 ! 3/RUC;N CO/S 9CURR$ 0! TAXPAY]
    6T "T1 9CLUD+ ! CO/ 6! TAXPAY] (
    MAT]IALS T H BE5 PUT 9 PLACE1 B N
    9CLUD+ HOLDBACKS T 3/ITUTE A 3DI;NAL
    LIABIL;Y 7= EXAMPLE1 A HOLDBACK :
    REQUIRES T ! "W 2 APPROV$ 0!
                                     #AD
             ,,IT-#BHE;,R#B          A#F
    TAXPAY]'S >*ITECT OR 5G9E] 2F
    PAY;T71 OR
  7B7 PROGRESS BILL+S RCVD 0! TAXPAY] 6T
    "T1 NET ( ANY HOLDBACKS T 3/ITUTE A
    3DI;NAL LIABIL;Y4
  
  ,H["E1 A BUILD+ 7OR "P "!(7 T IS "U
  3/RUC;N MAY 2 3SID]$ N 6BE AVAILA# =
  USE &1 Z A RESULT1 ,,CCA MAY 2
  RE/RICT$ 0! 8AVAILA# = USE RULES0 9
  SUBSEC;NS #AC7#BF7 & #AC7#BH74

       ,REDUC;N ( ,CAPITAL ,CO/--
         ,ASSI/.E OR ,9DUCE;TS
    
#AC4 ,G5],Y1 ! CAPITAL CO/ ( PROP]TY IS
  9CURR$ 0A TAXPAY] IF ! EXP5DITURES OR
  \TLAYS =! ACQUISI;N (! PROP]TY >E MET
  0! TAXPAY]4 ,ON O3A.N1 H["E1 A TAXPAY]
  9 "Q MAY RCV OR 2 5TITL$ 6RCV "S =M (
  ASSI/.E =! ACQUISI;N4 ,IF ANY =M (
  ASSI/.E IS RCVD1 ! CAPITAL CO/ (!
  PROP]TY = : X 0 RCVD MAY H 6BE REDUC$
  OR ! AM.T (! ASSI/.E 9CLUD$ 9      #AE
             ,,IT-#BHE;,R#B          B#F
  9COME4 ,SEE ! CURR5T V].N ( ,,IT-#BGC1
  ,GOV]N;T ,ASSI/.E--,G5]AL ,-;TS1 IF
  ANY =M ( ASSI/.E HAS BE5 RCVD4
#AD4 ,": A TAXPAY] ACQUIRES DEPRECIA#
  PROP]TY & AT A LAT] DATE ! V5DOR
  AGREES 6REDUCE ! AM.T [+ "U A
  NEGOTIAT$ ADJU/;T (! PUR*ASE PRICE1 !
  CAPITAL CO/ (! PROP]TY IS REDUC$ 0!
  AM.T (! REDUC;N AT ! 2G9N+ (! TAX,N
  YE> 9 : ! PRICE ADJU/;T TAKES PLACE4
  ,Z A RESULT (! REDUC;N 6! CAPITAL CO/
  (! PROP]TY1 ! UNDEPRECIAT$ CAPITAL CO/
  (! CLASS (! PROP]TY IS REDUC$ 0! SAME
  AM.T & AT ! SAME "T4 ,IF !
--------------------------------------#G
  ADJU/;T C 2 E/ABLI%$ 6BE A TRUE
  =GIVE;S ( DEBT1 R ?AN A REDUC;N 9 !
  PUR*ASE PRICE1 ! RULES 9 SEC;N #HJ W
  APPLY4




                                     #AF
                ,[N]%IP              A#G
    
#AE4 ,,CCA MAY 2 CLAIM$ ONLY = PROP]TY
  [N$ 0! TAXPAY] 7H["E1 SEE #BB 2L7 OR
  PROP]TY 9 : ! TAXPAY] HAS A L1SEHOLD
  9T]E/4 ,H["E1 A TAXPAY] :O ACQUIRES OR
  HOLDS PROP]TY Z AN AG5T OR NOM9EE =
  ANO!R _C CLAIM ,,CCA ON S* PROP]TY4 ,X
  %D 2 NOT$ T1 9 CALCULAT+ ! 9COME (A
  "PN]%IP1 SUBSEC;N #IF7#A7 (! ,ACT &
  SUBSEC;N #AAJB7#A;A7 (! ,REGUL,NS
  REQUIRE T "PN]%IP PROP]TY 79CLUD+
  DEPRECIA# PROP]TY7 2 A3.T$ = Z IF X 7
  [N$ AT ! "PN]%IP LEVEL4 ,IF !
  DEPRECIA# PROP]TY ACQUIR$ IS N 3SID]$
  8AVAILA# = USE01 ! ,,CCA MAY 2
  RE/RICT$ UNTIL S* A "T Z X IS AVAILA#
  = USE4 ,! 8AVAILA# = USE RULES0 >E 9
  SUBSEC;NS #AC7#BF7 TO 7#CA7 (! ,ACT4
#AF4 ,IF A TAXPAY]'S YE>-5D 9T]V5ES 2T !
  DATE ! TAXPAY] ORD]$ A DEPRECIA#
  PROP]TY &! DATE X 0 DELIV]$ 6! TAXPAY]
  9 USA# 3DI;N1 X "S"TS 2COMES NEC
  6DET]M9E :E!R1 = ,,CCA PURPOSES1 !
                                     #AG
             ,,IT-#BHE;,R#B          B#G
  TAXPAY] 8ACQUIR$0 ! PROP]TY 2F ! 5D (!
  TAX,N YE>4
#AG4 ,G5],Y1 A TAXPAY] W 2 3SID]$ 6H
  ACQUIR$ A DEPRECIA# PROP]TY AT ! E>LI]
  (3
  7A7 ! DATE ON : TITLE 6X IS OBTA9$1 &
  7B7 ! DATE ON : ! TAXPAY] HAS ALL !
    9CID5TS ( [N]%IP S* Z POSSES.N1 USE1
    & RISK1 EV5 ?\< LEGAL TITLE REMA9S 9
    ! V5DOR Z SECUR;Y =! PUR*ASE PRICE
    7Z IS -M]CIAL PRACTICE "U A 3DI;NAL
    SALE AGREE;T74
  
  ,9 ORD] T ! CO/ ( AN ASSET MAY FALL )9
  A SPECIFI$ CLASS1 ! PUR*AS] M/ H A
  CURR5T [N]%IP "R 9 ! ASSET XF & N
  M]ELY "RS "U A 3TRACT1 ( : ! ASSET IS
  ! SUBJECT1 6ACQUIRE X 9 ! FUTURE4
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--------------------------------------#H
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             ,,IT-#BHE;,R#B          A#H
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             ,,IT-#BHE;,R#B          B#H
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--------------------------------------#I
  ANO!R Z AN 9TEGRAL "P "!(1 & DOES N H
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             ,,IT-#BHE;,R#B          A#I
  PREP>+ PLANS & E/IMATES = NEW PLANTS1
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                                     #BB
         #EJ@3P ,RULE--,PROP]TY      B#I
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             ,,IT-#BHE;,R#B          C#I
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-------------------------------------#AJ
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             ,,IT-#BHE;,R#B         A#AJ
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                                     #BE
             ,,IT-#BHE;,R#B         B#AJ
  7H7 SPECIFI$ L1S+ PROP]TY (A CORPOR,N
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-------------------------------------#AA
#BE4 ,APPLIC,N (! #EJ@3P RULE DESCRIB$ 9
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             ,,IT-#BHE;,R#B         A#AA
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-------------------------------------#AB
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