,canada ,cu/oms                       #a
& ,rev5ue ,ag5cy

          ,9t]pret,n ,bullet9
    
,subject3 ,9come ,tax ,act
  ,9ve/ig,n ( ,site
,numb]3 ,,it-#cej;,r
,date3 ,june #f1 #aigg
,ref];e3 ,p>agraph #bj7#a77dd7 7al
  p>agraph #ec7#b77m7 & ,regul,n
  #aajb7#a77a77

  ,? ,bullet9 replaces & c.els
,9t]pret,n ,bullet9 ,,it-#cej dat$
,novemb] #ae1 #aigf4 ,curr5t revi.ns >e
designat$ 0v]tical l9es4

#a4 ,! deduc;n au?oriz$ 0p>agraph
  #bj7#a77dd7 relates 6c]ta9 exp5ditures
  made 0a taxpay] 9 9ve/igat+ a build+
  site1 : wd o!rwise n 2 deducti# 2c !y
  >e capital \tlays ^: deduc;n is
  prohibit$ "u p>agraph #ah7#a77b74
  ,6qualify =a deduc;n "u p>agraph    #a
              ,,it-#cej;,r           a#a
  #bj7#a77dd71 an exp5diture m/ meet !
  foll[+ ?ree require;ts3
  7a7 ! exp5diture m/ 2 made 9 ! ye> !
    deduc;n is claim$2
  7b7 ! purpose (! exp5diture m/ 2 !
    9ve/ig,n (a site 6asc]ta9 xs
    suitabil;y =a plann$ build+ or o!r
    /ructure2 &
  7c7 ! build+ or o!r /ructure ref]r$
    6in 7b7 abv m/ 2 9t5d$ = use 9 a
    busi;s c>ri$ on 0! taxpay]4
#b4 ,= purposes ( p>agraph #bj7#a77dd71
  x is immat]ial :e!r ! site is l& [n$
  0! taxpay] or l& 2+ 3sid]$ = possi#
  pur*ase 0hm4 ,x is al immat]ial :e!r1
  foll[+ ! 9ve/ig,n (! site1 ! propos$
  build+ or o!r /ructure is proce$$ ) or
  ab&on$4 ,! taxpay] claim+ a deduc;n "u
  p>agraph #bj7#a77dd7 may 2 ! [n] or
  pot5tial [n] (! site or may 2 a p]son
  :o1 z a possi# t5ant1 is 3sid]+ !
  3/ruc;n (a build+ or o!r /ructure on !
  site "u a l1se grant$ 0! [n] (! l&4
                                      #b
        ,types ( ,exp5ditures t      b#a
       ,qualify 7p>agraphs #c-d7
    
#c4 ,! purpose (! 9ve/ig,n (a site may 2
  6det]m9e :e!r ! l& is physic,y suit$
  =! plann$ build+ or o!r /ructure or
  :e!r s* a build+ or /ructure wd 2
  economic,y via# on t site1 or x may 2
  a -b9,n ( ^? two objectives4 ,c]ta9
  exp5ditures t qualify z hav+ s* a
  purpose >e not$ "h"u3
  7a7 ,co/s ( survey+1 soil te/+1 &
    >*itects' or 5g9e]s' reports on
    sub/rata1 wat] levels1 &! l4
--------------------------------------#b
  7b7 ,fees or o!r exp5ses 9curr$ 9
    e/abli%+ ! relevant municipal by-
    laws & o!r regul,ns gov]n+ ! p]mitt$
    use (! site1 9clud+ build+ re/ric;ns
    or require;ts4
  7c7 ,fees 6asc]ta9 ! limit,ns on use
    (! l& cr1t$ 0regi/]$ 9/ru;ts4
  7d7 ,co/s ( 3duct+ a f9ancial
    f1sibil;y /udy 9 respect (! plann$
    use (! build+ or o!r /ructure1    #c
              ,,it-#cej;,r           a#b
    9clud+ e/imates ( rev5ue pot5tial1
    proba# -peti;n1 etc4
#d4 ,": a co/ 9curr$ 9 respect ( l& is
  deducti# "u p>agraph #bj7#a77dd7 & al
  may 2 view$ z "p (! adju/$ co/ base (!
  l&1 p>agraph #ec7#b77m7 requires t !
  adju/$ co/ base (! l& m/ exclude !
  am.t t is deducti# "u p>agraph
  #bj7#a77dd74 ,": a co/ 9curr$ 9
  respect (a build+ or o!r /ructure is
  deducti# "u p>agraph #bj7#a77dd7 & al
  may 2 view$ z "p (! capital co/ (!
  build+ or o!r /ructure1 or (a l1sehold
  9t]e/ t is class$ 0,regul,n #aajb7#e7
  z a build+ or o!r /ructure1 ! am.t
  deducti# "u p>agraph #bj7#a77dd7 m/ 2
  exclud$ f ! capital co/ 9 ord] t !
  prop]ty w n 2 4qualifi$ = purposes (
  capital co/ all[.e pursuant 6,regul,n
  #aajb7#a77a74



                                      #d
       ,types ( ,exp5ditures t ,d    b#b
      ,n ,qualify 7p>agraphs #e-f7
    
#e4 ,! foll[+ types ( exp5ditures >e n
  3sid]$ 6be 9curr$ =! purpose (
  9ve/igat+ ! suitabil;y (a site =a
  propos$ build+ or o!r /ructure & ?us d
  n qualify =a deduc;n "u p>agraph
  #bj7#a77dd73
  7a7 ,exp5ses 9curr$ 6p]suade pot5tial
    t5ants 6l1se space 9 a propos$
    build+ or 69duce 9ve/ors 69ve/ 9 x4
  7b7 ,fees or o!r exp5ses 9curr$ 9 an
    attempt 65h.e ! suitabil;y (a site1
    e4g4 ef=ts 6h zon+ or build+
    regul,ns or re/ric;ns alt]$4
  7c7 ,fees pd 6public rel,ns or
    adv]tis+ firms 9 an attempt 6cr1te a
    receptive climate =! propos$
    develop;t (! site4
  7d7 ,am.ts exp5d$ z "p (! process (
    3/ruc;n r ?an site 9ve/ig,n1 e4g4
    >*itectural1 5g9e]+1 or o!r
    profes.nal fees pd =! design (a
    build+ 9 ord] 6meet !             #e
              ,,it-#cej;,r           c#b
    objectives (! taxpay] or 6-ply )!
    require;ts (a prospective t5ant4
  7e7 ,am.ts pd 63tractors = drill+ on !
    site 9 prep>,n =! excav,n4
  7f7 ,exp5ses 9curr$ 9 ! acquisi;n (!
    site1 e4g4 legal fees pd = v]ific,n
    ( title & 3veyanc+ (! l&4
--------------------------------------#c
#f4 ,t a c]ta9 exp5se does n qualify =a
  deduc;n "u p>agraph #bj7#a77dd71 z
  9dicat$ 9 #e abv1 does n necess>ily
  m1n t x is n deducti# 9 -put+ 9come =!
  tax,n ye> 9 : x 0 9curr$ or pd4
  ,dep5d+ on ! nature (! taxpay]'s
  busi;s1 c]ta9 ( ^! exp5ses may 2
  deducti# z ord9>y & recurr+ busi;s
  exp5ses4 ,co/s 9curr$ 9 mak+
  repres5t,ns 6a municipal body may 2
  deducti# "u p>agraph #bj7#a77cc74 ,o!r
  co/s may =m "p (! co/ (! l& or (!
  build+ 3/ruct$ on ! l& or may1 9 !
  case ( an ab&on$ project1 2 an eligi#
  capital exp5diture )9 ! m1n+ (
  p>agraph #ad7#e77b74                #f
      ,busi;s ,c>ri$ on 0,taxpay]    a#c
            7p>agraphs #g-h7
    
#g4 ,! require;t 9 p>agraph #bj7#a77dd7
  t ! plann$ build+ or o!r /ructure m/ 2
  = use 9 a busi;s c>ri$ on 0a taxpay]
  makes x cle> t a taxpay] is n 5titl$
  6a deduc;n "u ! p>agraph if ! prop]ty1
  :5 -plet$1 is n a busi;s asset (!
  taxpay]4 ,x is n nec t ! taxpay] o3upy
  ! build+ z a place ": busi;s is c>ri$
  on 0hm4 ,if ! taxpay]'s busi;s 3si/s (
  or 9cludes ! r5t+ ( prop]ty1 ! prop]ty
  wd 2 us$ 9 8 busi;s :5 x 0 r5t$ 0hm4
  ,:e!r1 9 ! case ( an 9dividual1 ! r5t+
  (a build+ or o!r /ructure 3/itutes !
  c>ry+ on (a busi;s is alw a "q ( fact
  6be det]m9$ prim>ily 0! nature & ext5t
  ( s]vices provid$ 6! t5ant or t5ants1
  ov] & abv normal ma9t5.e4 ,9 ! case (a
  corpor,n1 ! r5t+ ( prop]ty norm,y is
  view$ z a busi;s activ;y4
#h4 ,! date t a 3templat$ busi;s actu,y
  -m;es 7if x "e does7 is a critical
  factor 9 det]m9+ ! tax tr1t;t (     #g
              ,,it-#cej;,r           b#c
  pay;ts made =! 9ve/ig,n (a site = t
  3templat$ busi;s 0a taxpay]4 ,det]m9,n
  (! -m;e;t date (a busi;s is 4cuss$ 9
  "s detail 9 ,9t]pret,n ,bullet9
  ,,it-#cfd & does n necess>ily co9cide
  ) -m;e;t ( normal busi;s op],ns4 ,!
  "utak+ ( ess5tial prelim9>y /eps
  79clud+ ! 9ve/ig,n (a site7 l1d+ 6!
  />t ( normal busi;s op],ns may 2
  su6ici5t 69dicate t a busi;s has
  -m;ed4 ,?us1 x is possi# =a busi;s
  6-m;e ev5 if normal op],ns n"e 5sue4
  ,only pay;ts t >e made on or af ! date
  ( -m;e;t ( busi;s qualify = deduc;n "u
  p>agraph #bj7#a77dd74 ,pay;ts made 2f
  t date d n qualify =! deduc;n "u
  p>agraph #bj7#a77dd7 nor d !y qualify
  z eligi# capital exp5ditures =!
  purposes ( p>agraph #ad7#e77b74




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