Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
A Rabbi is provided a home with all utilities paid. Is the entire amount of the benefit deducted or only the rental value.
Position TAKEN:
Rental value of the home is fair market value less utilities
Reasons FOR POSITION TAKEN:
Paragraph 25 of proposed IT 141R
paragraph 8(1)(c) of the Act
XXXXXXXXXX 2000-000013
C. Tremblay
Attention: XXXXXXXXXX
January 14, 2000
Dear XXXXXXXXXX:
Re: Proposed Interpretation Bulletin IT-141R - Clergy Residence
This is in reply to your letter of January 3, 2000, wherein you seek further clarification after cordially reviewing the proposed Interpretation Bulletin IT-141R, Clergy Residence. You ask whether a Rabbi who is supplied a home with all the utilities paid would have a benefit to the extent of the utilities and other costs over and above the rent.
It is the Agency's view, and this view has been consistently held that, generally, the utilities paid on behalf of an individual eligible for the clergyman's residence deduction are a taxable benefit but are not deductible under paragraph 8(1)(c) of the Income Tax Act. This position is now reflected in a revised version of proposed Interpretation Bulletin IT-141R. The new revised bulletin reads as follows:
"The rental value of a residence either provided to the taxpayer by the employer or personally owned and occupied is the fair market value excluding utilities. However, if the rental value of similar premises normally includes the cost of some utilities, as is often the case with units of a duplex or apartment building and as is the case in certain cities, the deduction can include those items that do not result in a charge above basic rent."
We trust our comments are of assistance.
Yours truly,
Jim Wilson
for Director
Business and Publications Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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