Principal Issues: Whether the rental assistance payments received by tenants would be included in their income under paragraph 56(1)(u)?
Position: Likely included in the recipients income under paragraph 56(1)(u) with an offsetting deduction from taxable income, pursuant to paragraph 110(1)(f). The payments most likely need to be reported on Form T5007.
Reasons: The rental assistance payments appear to be a social assistance made on the basis of a means, needs or income test and would be required to be included in the recipients income under paragraph 56(1)(u). Where the rental assistance payments are part of a series of payments throughout the year or exceed a total of $500 for the year; XXXXXXXXXX would be required to issue a T5007 under subsection 233(1) of the Regulations.
