Question: The CRA will disallow taking full lease payment as deductions for taxes for any lease that: A: Has a lease term in excess of three

The CRA will disallow taking full lease payment as deductions for taxes for any lease that:

A: Has a lease term in excess of three years.

B: Has a term that is less than one-half of the economic life of the asset.

C: Appears to exist solely to avoid taxes.

D: Involves a lessee that has net operating losses.

E: Reduces the combined tax obligations of the lessor and the lessee.

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