CRA considers that a parking space can form part of a condo unit for principal residence exemption purposes

CRA accepts that when a parking space was acquired as part of the purchase of a residential condo unit, the parking space can thereafter form part of the condo unit (viewed as a “housing unit” for principal residence exemption purposes) provided that the parking space facilitates the use of the housing unit (which presumably would always be the case if it is actually used by the condo owner) and it is part of the common or private area for the same building – and this is so even if the parking space as a matter of real property law is separate from the condo unit.

Since the parking space is viewed as part of the single principal residence, CRA apparently considers that using the principal residence designation for the disposition of the parking space does not preclude the use of the principal residence exemption for the same years in question where there has been a subsequent sale of the condo unit.

Neal Armstrong. Summary of 10 June 2016 External T.I. 2015-0590371E5 Tr under s. 54 – principal residence – s. (e).