Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
November 14, 1994
Calgary District Taxation Office Business and General
Client Assistance Division Division
Mr. R.G. Burke M. Eisner
Acting Assistant Director (613) 957-2138
942470
Principal Residence Exemption
Pursuant to our telephone conversation on November 10, 1994 (Eisner/Burke), we are forwarding the attached letter from XXXXXXXXXX and our reply in which we suggested that he contact your office. We have also proceeded to provide you with comments which may be of assistance to you in resolving the issue at hand.
As you will see in the attached letter submitted by
XXXXXXXXXX
In the relation to the above circumstances, part of paragraph 22 of Interpretation Bulletin IT-120R4 "Principal Residence" states that "A legally imposed minimum lot size, for residential use, exceeding 1/2 hectare that was in effect on the date the property was acquired by the taxpayer, is generally considered to be the minimum amount of land necessary for the use and enjoyment of the housing unit as a residence throughout the period that the property is continuously owned by the taxpayer after that acquisition date".
It is unclear whether the comments in this excerpt from paragraph 22 are applicable to the above scenario where the zoning at the time of acquisition is described as "Agricultural Residential". There is insufficient information provided to determine whether the zoning by-law in question sets out minimum lot size restrictions, severance restrictions or both. We would emphasize that it is the Department's view that the position in that excerpt is not applicable to a situation where only severance restrictions exist, such as those on agricultural land to preserve land for farming use. In addition, the position in the excerpt is not considered to be relevant if, at the time of acquisition, an application could have been made to the municipal authority to subdivide the land into smaller parcels. If either of these two comments were to be applicable, it would seem to follow that only a part of the XXXXXXXXXX acres would qualify for the principal residence exemption assuming the part otherwise so qualifies.
Should you require any technical assistance, we would be pleased to provide our views.
J.A. Szeszycki
for Section Chief
Personal and General Section
Business and General Division
Rulings Directorate
Policy and Legislation Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1994
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1994
Email this Content