Principal Issues: 1. Who can claim a share of the qualifying expenditures incurred for common areas of a strata where there is a change in ownership of the strata unit during the HRTC eligibility period - the previous owner or the current owner?
2. How are the qualifying expenditures allocated between the previous owner and the current owner of the unit, if a unit changes its owners during the HRTC eligibility period?
Position: 1. Both, the previous owner who sold the unit and the current owner who bought the unit, may claim their share of the qualifying expenditures incurred by the strata council while they were the owner of the strata unit, providing all of the HRTC requirements are otherwise met.
2. Generally, the qualifying expenditures incurred for common areas are allocated to strata unit owners based on the governing documents and/or special resolutions of the strata corporation.
Reasons: 2009 Federal budget statements; Section 118.04 of the ITA