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:
Who is responsible for the deduction format for $1000/mo for a 10 month maximum for the clergy deduction when an individual ministers 12 months of the year?
Position TAKEN:
Dept of Finance responsibility-
It is but one limitation factor.
Reasons FOR POSITION TAKEN:
8(1)(c) draft legislation
XXXXXXXXXX 2001-007779
C. Tremblay, CMA
May 2, 2001
Dear XXXXXXXXXX:
Re: Clergy Residence Deduction
This is in response to your letter of March 27, 2001. Your letter questions the basis for the $10,000 maximum amount contained in the proposed amendment to paragraph 8(1)(c) of the Income Tax Act (the "Act").
The limitation factor you refer to results from a proposed amendment to paragraph 8(1)(c) of the Act that deals with living accommodations rented or owned by individuals who are otherwise eligible for the deduction. In these cases, the deduction that applies for the year 2001 and subsequent taxation years will be limited to the least of three amounts:
- the individual’s remuneration for the year from the office or employment.
- the greater of
- 1/3 of the individual’s total remuneration from the employment for the year, and
$1,000 per month (to a maximum of ten months) in the year during which an individual meets the conditions set out in subparagraphs 8(1)(c)(i) and (ii) of the Act, and
- the rent paid or the fair market value of the residence including utilities (this amount must be reduced by the total of all other amounts deducted in computing an individual’s income from a business or from an office or employment in connection with the same accommodation).
As requested we include a copy of IT-141R.
The Canada Customs and Revenue Agency is responsible only for the administration of the Income Tax Act and not for any changes to the tax policy or for any amendment to the legislation. This is the responsibility of the Department of Finance. Should you wish to pursue your concern further, you may contact the Tax Policy Branch of the Department of Finance by writing to L’Esplanade Laurier, 140 O’Connor Street, Ottawa, Ontario K1A 0G5.
We trust that these comments will be of assistance.
Yours truly,
Steve Tevlin
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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