CRA elaborates on types of residential-use property that are excluded property

The specified leasing property rules may restrict CCA claims of a lessor so that there is no tax benefit to it from having leased the equipment rather than making a secured loan. Excluded properties, which are excluded from the rule's ambit, includes in Regulation 1100(1.13)(a)(ii), "furniture, appliances, television receivers, radio receivers, telephones, furnaces, hot water heaters, and other similar properties designed for residential use."

CRA confirmed that the following items could be excluded property pursuant to Reg. 1100(1.13)(a)(ii) if the other conditions were satisfied: heat pumps (wall-mounted and central), air conditioners (wall-mounted and central), furnaces, boilers, as well as equipment and accessories such as electric baseboard heaters and convectors, hot-water heaters, humidifiers, generators, electrical panels and outlets.

It considered that boilers, water heaters, and furnaces were expressly covered by the Regulation’s “furnaces” and “hot-water heaters” language. The other listed items, “given their nature, the context provided and the fact that they are intended for residential use,” came within the phrase "and other similar properties."

Neal Armstrong. Summary of 4 February 2026 External T.I. 2025-1083931E5 F under Reg. 1100(1.13)(a)(ii).