1 December 1995 External T.I. 9530305 - LAND IN EXCESS OF 1/2 HECTARE

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.

Principal Issues:

whether clients excess land is necessary for the use and enjoyment of the housing unit as a residence

Position:

referred to local TSO

Reasons:

TSO in best situation to review all documentation & review facts

		953030
XXXXXXXXXX	Sandra Short

Attention: XXXXXXXXXX

December 1, 1995

Dear Sirs:

Re: Principal Residence: land in excess of 1/2 hectare

This is in reply to your letter of November 18, 1995 referring to XXXXXXXXXX. The area of land upon which the XXXXXXXXXX home is situated is in excess of 1/2 hectare and is approximately four acres in size. As noted by you, where the total area of the land upon which a housing unit is situated exceeds 1/2 hectare, the excess land is deemed by paragraph (e) of the definition of "principal residence" in section 54 of the Act not to have contributed to the use and enjoyment of the housing unit as a residence and thus will not qualify as a part of a principal residence, except to the extent that it can be established that the excess land is necessary for such use and enjoyment. In this regard, we would refer to the comments found in paragraphs 21 and 22 of Interpretation Bulletin IT-120R4. As also noted in the Interpretation Bulletin, in all cases, it is a question of fact as to how much, if any, of the excess land is necessary for the use and enjoyment of the housing unit as a residence.

Your local Tax Services Office is in the best position to make a decision on the XXXXXXXXXX situation once they are apprised of all the facts surrounding this case. As residents of XXXXXXXXXX they are served by the Scarborough Tax Services Office located at 200 Town Centre Court, Scarborough, Ontario M1P 4Y3. We would recommend that you provide all pertinent information and documentation to the Scarborough office which will assist in determining how much, if any, of the excess land is necessary for the use and enjoyment of the XXXXXXXXXX principal residence. Such information should include, for example, a map or other evidence that the excess land is necessary in order to provide the XXXXXXXXXX with access to and from public roads.

We trust our comments will be of assistance to you.

Yours truly,

P.D. Fuoco
for Director
Business and General Division
Rulings Directorate
Policy and Legislation Branch

c.c. Scarborough Tax Services Office

(Richard Sherwood Hall 404-311-706 and
Irene May Hall 456-474-204)