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.
Dear XXX
This is in reply to your letter of September 7, 1990 concerning the sale of your recreational home.
As we understand it, XXX from the time of acquisition to sale, you lived in the home each year from May to October and did not use it for the purpose of gaining or producing income. You feel that you have satisfied the “ordinarily inhabited” requirement and that pursuant to Interpretation Bulletin IT-120R3, the gain should be exempt.
For purposes of our reply, we assume that you meet all of the requirements in this Interpretation Bulletin and that your only concern is with the meaning of “ordinarily inhabited” as discussed in paragraph 9 of that Bulletin. In this connection, we draw your attention to paragraphs 3 and 12 of that Bulletin concerning property designated for a year after 1981 by a related person, such as your spouse or child, and land in excess of 1/2 hectare.
As indicated in paragraph 9, provided that the principal reason for owning your home was not for the purpose of gaining or producing income therefrom, you would be considered to have “ordinarily inhabited” the home in a particular year notwithstanding that you only inhabited it from May to October of the year.
We trust that the foregoing comments will be of assistance to you. For your assistance, we enclose a copy of Form T2091 which should be filed with your tax return for the year in which the property is sold.
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, 1990
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, 1990
Email this Content