3 December 2019 CTF Roundtable Q. 14, 2019-0824481C6 - Replacement Property Rules -- summary under Subsection 13(4.1)

In order to expand its operations, a manufacturer acquires vacant land, takes three years to build a new plant, moves its operations there and, eight months later, sells the former property. CRA indicated that there is no requirement that the replacement property be acquired after the former property is disposed of – so that the acquisition of the new property in advance of the disposition of the former property would not prevent it from being a replacement property for ss. 13(4.1) and 44(5) purposes.