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: Will a life lease constitute a qualifying home for home buyers plan?
Position: probably
Reasons: In 9319717, we opined that in that case it would. The documentation on the lease in this case supports the same position.
XXXXXXXXXX 980571
M. P. Sarazin
Attention: XXXXXXXXXX
May 1, 1998
Dear Sirs:
Re: Life Lease Qualify under the Home Buyers Plan
This is in reply to your facsimile dated March 9, 1998, wherein you requested written confirmation that the acquisition of a unit in the XXXXXXXXXX would be a “qualifying home” within the meaning assigned by subsection 146.01(1) of the Income Tax Act.
It appears that the interpretation you seek relates to proposed transactions to be undertaken by a specific taxpayer and, therefore, we bring to your attention Information Circular 70-6R3 dated December 30, 1996, issued by Revenue Canada. Confirmation of tax consequences with respect to proposed transactions involving specific taxpayers will only be provided in response to a request for an advance income tax ruling. If you wish to obtain an advance income tax ruling with respect to specific transactions which are contemplated, a written request for an advance income tax ruling can be submitted in accordance with the Information Circular. Nevertheless, we can provide you with the following general comments.
The determination of whether a particular life lease will constitute a “qualifying home” for the home buyers plan is a question of fact. However, we have previously opined that a life lease could qualify as a “qualifying home” for purposes of the Home Buyers Plan. Consequently, where a life lease provides a person with most of the benefits of home ownership then the particular life lease will be considered a qualifying home.
We trust that the above comments will be of assistance to you.
Yours truly,
Paul Lynch
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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