Income Tax Regulations
5400. (1) Subject to section 5401, the excess referred to in paragraph 80(1)(b) of the Act, after deducting the portion thereof required to be applied as provided in paragraph 80(1)(a) of the Act, shall be applied at the time the debt or obligation is settled or extinguished, in the following order to reduce to the maximum extent possible
(a) the capital cost of depreciable property of a prescribed class or prescribed classes, as the case may be;
(b) the capital cost of depreciable property other than depreciable property of a prescribed class;
(c) the adjusted cost base at that time of capital property, other than depreciable property and personal-use property;
(d) the adjusted cost base at that time of capital property that is listed personal property; and
(e) the adjusted cost base at that time of capital property that is personal-use property, other than listed personal property.
(2) Where an amount is to be applied pursuant to subsection (1), the taxpayer may choose any particular property to make the reduction in the order specified therein.
- NOTE: Application provisions are not included in the consolidated text;
- see relevant amending regulations. SOR/84-948, s. 15;
- SOR/88-165, s. 29(F);
- SOR/94-686, s. 69(F).
- Date modified: