CRA confirms that the “qualifying home” test for first-time home buyer credit purposes precludes ownership of a principal place of residence outside Canada in the 4 preceding years

In most circumstances, s. (a)(ii) of the definition of “qualifying home” in s. 118.05 requires the individual who is acquiring a qualifying home to have not occupied a home in the period beginning four years before the year of the acquisition.

CRA indicated that it interprets s. (a)(ii) as requiring the individual not to have inhabited a home during that period as the individual's “principal place of residence,” as defined in ITTN No. 31. CRA further indicated that it made no difference whether the home was so inhabited during the four-year period inside or outside Canada.

Neal Armstrong. Summaries of 31 December 2024 External T.I. 2021-0885741E5 F under s. 118.05(1) - qualifying home - s. (a)(ii), s. (a)(iii).