{"id":481,"date":"2013-03-04T17:45:11","date_gmt":"2013-03-04T17:45:11","guid":{"rendered":"https:\/\/thor.ca\/\/blog\/?p=481"},"modified":"2025-02-12T13:29:33","modified_gmt":"2025-02-12T21:29:33","slug":"cra-considers-payment-received-to-give-up-leased-office-space","status":"publish","type":"post","link":"https:\/\/www.thor.ca\/blog\/2013\/03\/cra-considers-payment-received-to-give-up-leased-office-space\/","title":{"rendered":"CRA considers payment received to give up leased office space"},"content":{"rendered":"<p>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2013\/03\/2012-0436781E5.pdf\">2012-0436781E5<\/a>, the CRA was asked whether a payment received by Company A from Company B in exchange for giving up Company A\u2019s share of leased office space was income (s. 9), a capital gain (s. 39), or an eligible capital amount (s. 14).  The CRA said that Company A\u2019s interest in the office space was a leasehold interest, and that the transaction amounted to a sublease to Company B for the <em>entire<\/em> term.  Citing the decision in <em>Sussex Square Apartments v. The Queen<\/em>, 99 DTC 443, the CRA said this amounted to a disposition of Company A\u2019s leasehold interest, giving rise to a capital gain.  The CRA appears to have assumed that Company A had no original cost in its leasehold interest, such that there was no recapture (of prior tax depreciation) arising on the disposition.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2013\/03\/2012-0436781E5.pdf\">2012-0436781E5<\/a>, the CRA was asked whether a payment received by Company A from Company B in exchange for giving up Company A\u2019s share of leased office space was income (s. 9), a capital gain (s. 39), or an&hellip;<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-481","post","type-post","status-publish","format-standard","hentry","category-corporate-tax"],"_links":{"self":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/481","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/comments?post=481"}],"version-history":[{"count":1,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/481\/revisions"}],"predecessor-version":[{"id":2803,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/481\/revisions\/2803"}],"wp:attachment":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/media?parent=481"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/categories?post=481"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/tags?post=481"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}