CRA indicates that payment of one’s home office expenses by a spouse could give rise to s. 9 or 80 inclusions

Respecting the situation where the taxpayer, an independent contractor, incurred home office or automobile expense and another person (who might be a spouse) paid such expenses, CRA stated that the fact of the payment of the expenses by another need not detract from their having been incurred by the taxpayer – but found that the payment by the other might give rise to an inclusion under s. 9 (or s. 80).

All the answers at the (regular) October 2018 APFF Roundtable have now been uploaded in fully translated form. Next week we will start publishing translated CRA responses at the October 2018 Financial Strategies and Instruments Roundtable on a piecemeal basis.

Neal Armstrong. Summaries of 5 October 2018 APFF Roundtable, Q.16 under s. 18(1)(a) – incurring of expense, s. 9 – nature of income, and s. 13(21) – undepreciated capital cost - A and s. 13(21) – depreciable property.