6 July 1989 External T.I. 32525 F - Request for Advance Income Tax Ruling

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.

July 6, 1989

Dear Ms.  19(1)

Re:  24(1) Request for Advance Income Tax Ruling

We are responding to your letter of June 23, 1989 and our telephone conversation of June 28, 1989, 19(1) /Humenuk) concerning your request for an advance income tax ruling in respect of the 24(1)

24(1)

We are unable to provide an advance income tax ruling as requested as the request is not in respect of a proposed transaction and as such it does not meet the Department's requirements as stated in Information Circular 70-6R dated December 18, 1978.

We are, however, prepared to offer our opinion as to whether the property in question would qualify as a housing unit for the purposes of paragraph 54(g) of the Income Tax Act (the "Act").

As we understand it, 24(1)

24(1)

We are unable to provide a definitive response to your question because the designation of a particular property as a principal residence is made in the return of income for the taxation year in which the property has been disposed of or for which an option has been granted. Furthermore, it is not possible to make a determination of whether the property could be so designated without a review of all the pertinent information. Please refer to Interpretation Bulletin IT-120R3 "Principal Residence" if further information is required. 

However, it is our view that an undivided interest in the building and land acquired by a co-owner in order to acquire the right to exclusive occupation of an apartment for his or her own personal use and enjoyment as a dwelling place would qualify as a housing unit, which in turn, could be designated as a principal residence provided the housing unit otherwise qualifies for such designation.

Your deposit will be returned under separate cover.

Yours truly,

for Director Small Business and General DivisionSpecialty Rulings Directorate Legislative and IntergovernmentalAffairs Branch

c.c.   Toronto District Office