Income Tax Severed Letters - 2023-10-04

Technical Interpretation - External

5 July 2023 External T.I. 2023-0969491E5 - Disaster relief to make homes habitable - T5007

Unedited CRA Tags
56(1)(u); 56(2)

Principal Issues: Whether assistance to low income individuals in the form of multiple payments to suppliers and contractors to rebuild the individuals' homes after a disaster, would be considered to be social assistance payments, to be included in the recipients' income and reported on a T5007.

Position: No.

Reasons: The CRA's longstanding administrative position whereby disaster relief payments to individuals and compensation for loss of, or damage to a personal residence do not ordinarily result in any income tax consequences to the individual.

7 February 2023 External T.I. 2023-0960661E5 - MHRTC

Unedited CRA Tags
ITA: Section 122.92, Subsections 122.92(1), (3) and (4).

Principal Issues: Whether the amounts paid to renovate a bathroom in a rental property where a taxpayer’s adult son with a disability resides, but is not the taxpayer’s principal residence, would qualify as an eligible renovation for the purposes of the Multigenerational Home Renovation Tax Credit.

Position: Question of fact, amounts paid for a bathroom renovation may qualify for the MHRTC, provided all the requirements of the provisions are met.

Reasons: Under subsection 122.92(1) a qualifying renovation is one that creates a secondary unit in the dwelling to permit a qualifying individual to live with a qualifying relation. In addition, in order to be considered an eligible dwelling, the housing unit must be ordinarily inhabited, or intended to be ordinarily inhabited, by the qualifying individual and a qualifying relation of the qualifying individual within 12 months at the end of the renovation period. Therefore, both the qualifying individual and a qualifying relation need to inhabit the housing unit within 12 months at the end of the renovation period.

Technical Interpretation - Internal

11 July 2023 Internal T.I. 2023-0969261I7 - MHRTC - throughout the year

Unedited CRA Tags
122.92

Principal Issues: For an immigrant who comes in on January 1st or an emigrant that leaves on December 31st, are they considered resident throughout the year?

Position: Question of fact.

Reasons: Determination of whether an individual is resident in Canada for tax purposes is a question of fact, and not always determined by the date an individual comes to/departs Canada. The phrase throughout the taxation year means the condition must be met for the entirety of the year, at any time during the year.