There are two options available: first, you can reduce the un-depreciated capital cost (UCC) of the leaseholds by the amount of the inducement. For example, if the leasehold is $50,000, and you received an inducement payment of $10,000, you can choose to include the leaseholds at a UCC of $40,000. On the other hand, you can include the leaseholds at its original UCC, while recording the full inducement amount in income.
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.
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