4 May 1990 Income Tax Severed Letter AC59642 - Deduction of Property Taxes for Buidings and their Contiguous Land

By services, 22 July, 2022
Official title
Deduction of Property Taxes for Buidings and their Contiguous Land
Language
English
Document number
Citation name
AC59642
Severed letter type
Miscellaneous
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
657254
Extra import data
{
"field_external_guid": [],
"field_proprietary_citation": [],
"field_release_date_new": "1990-05-04 08:00:00",
"field_tags": []
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Main text
24(1)                                             5-9642
                                                  C.R. Brown
                                                  957-2082

Attention: 19(1)

May 4, 1990

This is in response to your letter of February 19, 1990 concerning subsection 18(2). We apologize for the delay in replying.

A corporate developer acquires property for the construction of a commercial office tower for lease or sale. The property consists of houses and commercial buildings which the developer will rent while the plans for the commercial office tower are finalized. You believe that subsection 18(2) will not restrict the deduction of interest or property taxes because of paragraph 18(3)(a). Paragraph 18(3)(a) provides that buildings, other structures and their subjacent and contiguous land are not "land" for the purposes of subsection 18(2).

We agree subsection 18(2) will not restrict the deduction of a reasonable amount for interest and taxes if the property acquired is property described in paragraph 18(3)(a). This will, of course, depend on the specific facts and circumstances. Subsection 18(2) will apply to the extent the interest or taxes relate to land not described in paragraph 18(3)(a).

An advance income tax ruling may be requested for a proposed transaction involving a specific case.

Yours sincerely,

for Director Business and General Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch