ARCHIVED - Capital Cost Allowance - Logging Assets

From: Canada Revenue Agency

What the "Archived Content" notice means for interpretation bulletins


SPECIAL RELEASE Capital Cost Allowance - Logging Assets

IT-501 December 30, 1987 Paragraph 20(1)(a) (also classes 10 and 15 of Schedule II and Schedule IV to the Regulations).

1. Paragraph 2 of IT-501 is cancelled and replaced by the following:

"2. Logging operations are generally considered to encompass any of the following: (a) cutting or "felling" trees in the woods, (b) trimming off branches and tops, (c) "bucking" into desired log lengths, (d) transporting logs to tidewater, or some other central gathering point, e.g. dry land sort, and (e) booming, rafting, or loading onto barges for towing to the mill. Where a taxpayer is engaged not only in logging but also in a manufacturing enterprise such as the operation of a sawmill or pulp and paper mill, assets used in the processing of logs into the final product are not logging assets. For example, wood-handling equipment in the mill yards of a pulp and paper company is not a logging asset since it is used in the first stage of the manufacturing process."

2. Paragraph 9 is cancelled and replaced by the following:

"9. Examples of specialized logging equipment which may be included in class 10 are as follows: (a) Automotive equipment - trucks, tractors, skidders, "tree harvesters" and self-propelled cranes. (b) Mechanical equipment (when acquired for logging operations) - yarders, sulkies, logging arches, slashers, barkers, loaders, unloaders, hoists, winches, garage equipment, machine shop equipment, blacksmith shop equipment, railway locomotives and rolling stock and power-operated, movable, road-building equipment acquired to construct roads to or within a timber limit."

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