Income Tax Severed Letters - 2021-12-01

Technical Interpretation - External

23 November 2021 External T.I. 2021-0881361E5 - CERS - Self-Contained Domestic Establishment

Unedited CRA Tags
125.7; 18(12)
Summary Under
Tax Topics - Income Tax Act - Section 125.7 - Subsection 125.7(1) - Qualifying Property
CERS cannot be claimed for an occupied residence, even where the claimant is not the occupant

Principal Issues: Whether a residential property in Canada that is a self-contained domestic establishment used in a business by an eligible entity can be “qualifying property”?

Position: No.

Reasons: The definition of “qualifying property” excludes a self-contained domestic establishment that is used by an eligible entity, or a person with whom the eligible entity does not deal at arm's length.

19 April 2021 External T.I. 2020-0873611E5 - HATC – New windows

Unedited CRA Tags
ITA: Section 118.041 and 118.3; Paragraph 18.2(2)(l.2); Paragraph 5700(1)(i) of the ITA Regulations..

Principal Issues: Whether the amounts paid for new windows, including installation, qualify for the HATC.

Position: Question of fact, see response.

Reasons: The cost of new windows, including installation, is typically the type of expenditure that is made for the purpose of increasing or maintaining the value of the eligible dwelling. However, where the facts of a situation support the view that the primary purpose of the expenditure was incurred to undertake a qualifying renovation, a claim under the HATC may be allowed.