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

          ,9t]pret,n ,bullet9
    
,subject3 ,9come ,tax ,act
  ,capital ,co/ ,all[.e--,lo7+ ,assets
,numb]3 ,,it-#eja
,date3 ,septemb] #d1 #aihd
,ref];e3 ,p>agraph #bj7#a77a7 7al
  classes #aj & #ae ( ,s*$ule ,,ii &
  ,s*$ule ,,iv 6! ,regul,ns7

#a4 ,? bullet9 4cusses ! classific,n1 =
  capital co/ all[.e purposes1 ( v>i\s
  assets us$ 9 ! lo7+ 9du/ry4 ,!
  classific,n & det]m9,n (! maximum
  capital co/ all[.e rates = timb]
  res\rce prop]ties & timb] limits >e
  4cuss$ 9 ,,it-#dha4
#b4 ,lo7+ op],ns (a lo7] >e g5],y 3sid]$
  65compass ! foll[+3
  7a7 cutt+ or 8fell+0 trees 9 ! woods1
  7b7 trimm+ (f bran*es & tops1
  7c7 8buck+0 96desir$ log l5g?s1     #a
               ,,it-#eja             a#a
  7d7 transport+ logs 6tidewat]1 or "s
    o!r c5tral ga!r+ po9t1 e4g4 dry l&
    sort1 &
  7e7 boom+1 raft+1 or load+ onto b>ges
    = t[+ 6! mill4
  ,": a taxpay] is 5gag$ n only 9 lo7+ b
  al 9 a manufactur+ 5t]prise s* z !
  op],n (a sawmill or pulp & pap] mill1
  assets us$ 9 ! process+ ( logs 96!
  f9al product >e n lo7+ assets4 ,=
  example1 wood-h&l+ equip;t 9 ! mill
  y>ds (a pulp & pap] -pany is n a lo7+
  asset s9ce x is us$ 9 ! f/ /age (!
  manufactur+ process4 ,9 a4i;n1 ":
  op],ns describ$ 9 7d7 or 7e7 abv >e
  c>ri$ \ 0a 3tractor :o nei [ns ! limit
  or cutt+ "rs nor c>ries \ ! op],ns
  describ$ 9 7a7 to 7c71 ! 3tractor does
  n c>ry on a lo7+ op],n4




                                      #b
        ,immova# ,woods ,assets      b#a
            7p>agraphs #c-d7
    
#c4 ,! expres.n 8immova# woods assets0 z
  us$ 9 ? bullet9 ref]s 6immova# prop]ty
  acquir$ =! purpose ( cutt+ & remov+
  m]*anta# timb] f a timb] limit1 :
  prop]ty w 2 ( no fur!r use 6! taxpay]
  af all m]*anta# timb] has be5 remov$ f
  ! limit4 ,examples ( lo7+ assets ( ?
  k9d t >e mo/ -monly 9 use >e camp &
  depot build+s 79clud+ wat]1 sew] &
  electrical sy/ems71 roads1 bridges1
  canals1 culv]ts1 railway track
--------------------------------------#b
  & grad+1 dams1 teleph"o l9es1 fire
  protec;n t[]s1 docks & :>ves = load+
  logs &= load+ or unload+ supplies1 &
  flumes & *utes4 ,vessels locat$ 9 l&-
  lock$ wat]s1 9 circum/.es ": !y _c 2
  remov$ or sold1 >e al 3sid]$ 6be
  assets ( ? k9d4
#d4 ,immova# woods assets : h a use;l
  life ( ?ree ye>s or less 0r1son (!
  fact t all m]*anta# timb] w h be5   #c
               ,,it-#eja             a#b
  remov$ 9 t "t f ! "picul> >ea s]vic$
  0^? assets may 2 writt5-(f z curr5t
  exp5ses 9 ! ye> 9 : !y >e 9curr$4
  ,h["e1 a taxpay] may *ose 6tr1t ^!
  co/s z co/s ( acquisi;n ( immova#
  woods assets1 & m/ tr1t !m z immova#
  woods assets if ! use;l life w exce$
  ?ree ye>s4

       ,classific,n--,s*$ule ,,ii
            7p>agraphs #e-f7
    
#e4 ,al? specific assets may 2 prop]ty
  describ$ 9 v>i\s o!r classes1 immova#
  woods assets may1 at ! op;n (!
  taxpay]1 2 classifi$ 9 ! ye> acquir$ z
  prop]ty 6be 9clud$ 9 p>agraph 7n7 (
  class #aj or 9 class #ae4 ,classific,n
  z prop]ty describ$ 9 p>agraph 7n7 (
  class #aj1 h["e1 is 3t+5t ^u all
  prop]ty t qualifies "!9 2+ classifi$
  "!"u & n m]ely "s ( x4 ,on ! o!r h&1 a
  taxpay] may classify "s or all immova#
  woods assets z prop]ty ( class      #d
               ,,it-#eja             b#b
  #ae or ( any o!r classes 9 : !y >e
  describ$1 o!r ?an p>agraph 7n7 ( class
  #aj4 ,x %d 2 not$ t riv] improve;ts
  made 6facilitate ! removal ( timb] f a
  "picul> limit qualify = 9clu.n 9 class
  #ae 0virtue ( ,regul,n #aajb7#g71 b >e
  n o!rwise deprecia# prop]ty1 i4e4 may
  n 2 9clud$ 9 class #aj or 9 any o!r
  prescrib$ class4
#f4 ,0virtue ( ,regul,n #aajj7#a77f7 &
  ,s*$ule ,,iv 6! ,regul,ns1 a taxpay] )
  prop]ty 9 class #ae is 5titl$ 6claim
  capital co/ all[.e bas$ on a rate p]
  cord or bo>d foot ( produc;n 9 ! ye>1
  r ?an at an am.t n exce$+ a fix$
  p]c5tage rate appli$ 6! undepreciat$
  capital co/ (! class4 ,if all !
  prop]ty 9 class #ae 0 us$ =! "o limit
  or sec;n "!(1 ! rate p] cord or bo>d
  foot is det]m9$ 0divid+ ! undepreciat$
  capital co/ (! prop]ty 0! numb] (
  cords or bo>d feet ( timb] 9 ! limit
  or sec;n "!( z at ! -m;e;t (! tax,n
  ye>4 ,": di6]5t "ps (! class 7      #e
               ,,it-#eja             c#b
  us$ 9 3nec;n ) di6]5t timb] limits or
  sec;ns "!(1 sep>ate rates >e -put$ =
  ea* "p (! class z ?\< ea* "p (! class
  7 ! taxpay]'s only prop]ty ( t class4
  ,! same rate w 3t9ue f ye> 6ye> un.s
  "! is a cruise : 9dicates a *ange 9 !
  quant;y ( timb] recov]a# f ! limit
--------------------------------------#c
  or "! >e a4i;ns 6or dele;ns f !
  capital co/ (! class4

          ,roads 7p>agraph #g7
    
#g4 ,! co/ ( 3/ruct+ any road on l& 9 :
  ! taxpay] has no b5eficial [n]%ip
  9t]e/ is n a capital co/ ( deprecia#
  prop]ty1 al? x may 2 an eligi# capital
  exp5diture 7see ,,it-#abh74 ,h["e1
  p]mits & o!r "rs grant$ 0l&[n]s 9
  respect ( roads usu,y 3f] significant
  9cid5ts ( l& [n]%ip on ! grantee 9 :
  case road 3/ruc;n co/s c 2 prop]ty
  9clud$ 9 deprecia# prop]ty classes4 ,a
  road t is expect$ 6h a use;l life   #f
               ,,it-#eja             a#c
  2y ! life (! timb] limit x is s]vic+
  %d 2 9clud$ 9 class #a or #ag 7dep5d+
  on ! date ( xs acquisi;n7 if n 9clud$
  9 class #aj7p74 ,a3ess roads or trails
  =! protec;n ( /&+ timb] ag/ fire1
  9sects & 41se qualify = 9clu.n 9 class
  #aj7p74 ,roads : meet ! descrip;n (
  immova# woods assets 9 #c abv may 2
  9clud$ 9 class #a1 class #ag1 class
  #aj7n71 class #aj7p7 or class #ae4
  ,not)/&+ any (! prec$+ -;ts1 a taxpay]
  may1 z an alt]native1 tr1t exp5ditures
  : relate 6a spur road or trail bran*+
  (f f ano!r road = a3ess 6a specific
  timb] /& or >ea f : all m]*anta# timb]
  w 2 remov$ )9 ?ree ye>s z exp5ses (!
  ye> 9 : !y >e 9curr$4 ,n"e!.s1 ! co/ (
  an 8a45dum road0 7a road 9 respect ( :
  ! co/s >e recov]a# f ! cr[n1 usu,y 0a
  reduc;n 9 8/umpage0 *>ges7 is simply
  an a3.t receiva# & is nei deducti# nor
  deprecia#4

                                      #g
       ,lo7+ ,equip;t 7p>agraphs     b#c
                 #h-i7
    
#h4 ,c]ta9 equip;t1 acquir$ = lo7+
  op],ns b n cov]$ 0class #aj7n71
  ord9>ily w al fall )9 ! scope ( "o (!
  foll[+ p>agraphs ( class #aj3
    #aj7a7--automotive equip;t4
    #aj7c71 7d7 or 7e7--h>;s or /a#
      equip;t1 slei<s1 wagons or
      trail]s4
    #aj7o7--me*anical equip;t1 n 9clud+
      prop]ty describ$
    9 class #g 7see ,boats1 2l74
  ,electrical g5]at+ equip;t1
  radiocommunic,n equip;t1 &
  miscellane\s equip;t : is n specific,y
  describ$ 9 ano!r class1 may 2 prop]ty
  6be 9clud$ "u p>agraph 7f71 7j7 or 7i7
  respectively ( class #h4 ,any (! abv
  not$ equip;t t 0 acquir$ = use 9
  respect ( "o timb] limit only & w 2 (
  no fur!r use af all ! m]*anta# timb]
  has be5 remov$ f t limit may 2
  classifi$ "u class #ae = all[.es    #h
               ,,it-#eja             c#c
  bas$ on ! produc;n f ! limit4 ,z
  4cuss$ 9 #e abv1 ! classific,n (
  equip;t acquir$ = use at "o timb]
  limit z prop]ty ( any class o!r ?an
  class #aj w prev5t ! classific,n ( any
  o!r prop]ty (! taxpay] "u p>agraph 7n7
  ( class #aj4 ,al1 lo7+ equip;t is
  exclud$ f class #bi 0virtue ( ,regul,n
  #aajd7#i77b74
--------------------------------------#d
#i4 ,examples ( specializ$ lo7+ equip;t
  : may 2 9clud$ 9 class #aj >e z
  foll[s3
  7a7 ,automotive equip;t--trucks1
    tractors1 ski4]s1 8tree h>ve/]s01
    self-propell$ cranes1 & p[]-op]at$
    mova# road-build+ equip;t acquir$ 0a
    lo7] 63/ruct roads 6or 9 ! timb]
    limits (! lo7]4
  7b7 ,me*anical equip;t 7:5 acquir$ =
    lo7+ op],ns7--y>d]s1 sulkies1 lo7+
    >*es1 sla%]s1 b>k]s1 load]s1
    unload]s1 hoi/s1 w9*es1 g>age
    equip;t1 ma*9e %op equip;t1       #i
               ,,it-#eja             a#d
    blacksmi? %op equip;t & railway
    locomotives & roll+ /ock4
  
         ,boats 7p>agraph #aj7
    
#aj4 ,canoes1 r[boats1 sc[s1 tugboats &
  o!r vessels & _! fitt+s may n 2
  classifi$ z me*anical equip;t acquir$
  = lo7+ op],ns "u p>agraph 7o7 ( class
  #aj4 ,norm,y !y >e 9clud$ z prop]ty (
  class #g 7see ,,it-#bfg;,r74 ,": a
  boat is acquir$ = use 9 respect ( "o
  timb] limit only & w 2 ab&on$ :5 all !
  m]*anta# timb] has be5 remov$ f t
  limit1 x may 2 classifi$ z prop]ty 6be
  9clud$ 9 p>agraph 7n7 ( class #aj or 9
  class #ae 7see #e abv74

        ,boom*a9s 7p>agraph #aa7
    
#aa4 ,boom*a9s repres5t supplies 6be
  a3.t$ = z 9v5tory (! taxpay]4

                                     #aj
       ,p[] ,saws 7p>agraph #ab7     b#d
    
#ab4 ,! ,de"p;t is prep>$ 6all[ a
  taxpay] :o is requir$ 0a 3tract (
  employ;t 6supply a p[] saw 6deduct f
  9come ! co/ (! p[] saw 9 ! ye> (
  pur*ase4 ,! ,de"p;t's practice is set
  \ 9 ,9=m,n ,circul> #gd-f;,r1 8,p[]
  ,saw ,exp5ses04

     ,l1s$ ,lo7+ ,equip;t 7p>agraph
                  #ac7
    
#ac4 ,l1s+ equip;t acquir$ 0a taxpay] &
  subsequ5tly l1s$ 6a p]son c>ry+ on a
  lo7+ op],n is norm,y n 3sid]$ 6h be5
  acquir$ 0! lessor = lo7+ op],ns4
  ,9/1d1 x is 3sid]$ 6h be5 acquir$ =!
  purpose ( l1s+4 ,acly1 s* prop]ty is
  9clud$ 9 ! class 9 : x is o!rwise
  describ$1 & n 9 p>agraph 7o7 ( class
  #aj4 ,h["e1 ! lessor may 2 3sid]$ 6h
  acquir$ ! prop]ty = lo7+ op],ns 9 !
  foll[+ circum/.es4
                                     #aa
               ,,it-#eja             c#d
  7a7 ": ! prop]ty acquir$ is specializ$
    lo7+ equip;t & _c 3v5i5tly 2 us$ =
    purposes o!r ?an lo7+1 or
  7b7 ": ! prop]ty1 al? x is capa# ( 2+
    us$ = purposes o!r ?an lo7+1 is
    acquir$ specific,y 6be l1s$ \ 6a
    p]son 6be us$ 9 t p]son's lo7+
    op],ns4
  ,9 ei case1 ! lessor may 9clude !
  prop]ty 9 class #aj 0virtue ( p>agraph
  7o7 "!(4












                                     #ab