In 2014-0553731I7 (recently released), a subsidiary had acquired a depreciable property and subsequently liquidated into its parent company (Parent) under s. 88(1).  The property sat idle in the Parent’s hands for years before being sold, at which time the Parent claimed a terminal loss under s. 20(16).  The local CRA Tax Services Office proposed to deny the terminal loss.  The CRA’s Rulings Directorate in Ottawa disagreed, saying the terminal loss was available to the Parent  having regard to the purpose of s. 88(1)(f), the deeming rule in Regulation 1104(14), and the Supreme Court of Canada’s decisions in Hickman Motors and Mara Properties (see page 13).  However, the Rulings Directorate also said the Parent would not be entitled to claim CCA in the period before the property was sold because the Parent did not have a business source in connection with the property (see page 12).