Income Tax Severed Letters - 2025-11-12

Technical Interpretation - External

3 September 2025 External T.I. 2024-1007671E5 - Active business

Unedited CRA Tags
125(7); 248(1) "active business"
Summary Under
Tax Topics - Income Tax Act - Section 125 - Subsection 125(7) - Specified Investment Business
forest management generally does not generate income from property, but this may not obtain where the only revenue is from stumpage and carbon offset credits

Principal Issues: Whether a taxpayer’s forestry activities, consisting of forest management, stumpage or log sales, and sale of carbon credits, qualify as an active business?

Position: Question of fact.

Reasons: Income from an active business does not include income from a specified investment business (“SIB”). Generally, if the principal purpose of the business is to derive income from property, the business could be considered a SIB. Whether income received from stumpage sales and the sale of carbon offset credits is income from property is a question of fact.

20 November 2023 External T.I. 2022-0937331E5 - New Housing Model and Beneficial Interest

Unedited CRA Tags
54 - definition of principal residence, 146.01, 49(1), 49(3), 248(1) - definition of property
Summary Under
Tax Topics - Income Tax Act - Section 54 - Principal Residence
gain realized by a tenant under a rent-to-own program would not qualify for the principal residence exemption
Summary Under
Tax Topics - General Concepts - Ownership
tenant under a rent-to-own program did not have all the basic attributes of ownership and, thus, was not the beneficial owner
Words and Phrases
beneficial ownership
Summary Under
Tax Topics - Income Tax Act - Section 146.01 - Subsection 146.01(1) - Regular Eligible Amount
tenant under a rent-to-own program did not acquire a residence until exercise of the tenant’s purchase option

Principal Issues: Where an individual who has an investment in relation to a property and where the individual does not have legal title in the Property: 1. Does the individual have beneficial ownership or a leasehold interest in the Property so that a gain on the disposition of the investment can qualify for the principal residence exemption? 2. Whether the individual is considered to have acquired a "qualifying home" for purposes of the Home Buyers' Plan?

Position: 1. Question of fact but in our view the individual does not have beneficial ownership interest in the Property and the individual is likely not receiving an amount to terminate a leasehold interest in a housing unit. 2. When the individual enters into the Agreement, it is our view that the individual does not obtain a legal or beneficial ownership interest in the Property therefore they would not be considered to have acquired a “qualifying home” for purposes of the HBP. However, if in the future the individual exercises their option under the Agreement and acquires the Property, the individual may be able to participate in the HBP, providing all other conditions are met.

Reasons: 1. See comments.