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.
962562
XXXXXXXXXX M. Eisner
Attention: XXXXXXXXXX
September 25, 1996
Dear Sirs:
Re: Home Relocation Loans
This is in reply to your letter of July 18, 1996 concerning the above noted subject.
You have indicated that one of your employees (the Employee) was transferred from XXXXXXXXXX. The Employee was a home owner in XXXXXXXXXX, but decided to rent a housing unit (the Rental Unit) in XXXXXXXXXX. He has lived in the Rental Unit since 1992. As the Employee is now contemplating the purchase of a home, you have asked whether it would be possible for the Employee to receive a loan that could qualify as a "home relocation loan" (HRL), as defined in subsection 248(1) of the Income Tax Act (the Act).
One of the conditions of a HRL is that an individual must have commenced employment at a new work location in Canada and, for that reason, has moved from a former residence to a "new residence" in Canada where he or she will ordinarily reside after the move. It is our view that the Rental Unit would be the Employee's new residence for purposes of the HRL definition in subsection 248(1) of the Act, because that is where he would have established a settled routine of life over the past 4 years. Therefore, a loan received by the Employee for the purchase of a new home on the move from the Rental Unit would not qualify as a HRL.
We trust our comments will be of assistance to you.
Yours truly,
John F. Oulton
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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