35 What are the ‘available for use’ rules and what are the tax implications?
Sam Newton
“AVAILABLE FOR USE” RULES
Under ITA Section 13(26), you can start claiming CCA in the year that an asset is ‘available for use’ which means, broadly, the time you were able to commence using the asset as it was intended.
The rules regarding when an asset is considered to be available for use vary slightly depending on whether the asset is a building (see ITA 13(28)) or an asset other than a building (see ITA 13(27)). The overall goal is the same however, you can start claiming CCA (and applying the half-year rule) in the year that the asset can be used as intended.
Interactive content (Author: Bhanvi Ghai, January 2020)
Interactive content (Author: Jasneet Kakkar, January 2020)
References and Resources:
- S3-F4-C1 Income Tax Folio
- ITA 13(26) through (32)
- Article – “Available for use rules” (Author: Government of Canada)
January, 2020
