6 October 2011 External T.I. 2011-0417811E5 - Investment Tax Credit and 16.1(1) -- summary under Qualified Property

Where a lessor acquires a depreciable property that has never been used or leased by any person before the time it is leased to a lessee, and they have made an election for that property under s. 16.1(1), the fact that s. 16(1)(b) deems the lessee to have acquired the property at fair market value does not necessarily mean that the property had previously been "used, or acquired for use or lease" for the purposes of s. 127(9).