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.
October 19, 1984
WINNIPEG DISTRICT OFFICE C. Grant Field Audit XXXX
HEAD OFFICE Specialized Audit Division L.L. Brierley 996-9986
Disposition of Residence XXXX
This will acknowledge receipt of your memorandum dated July 16, 1984, dealing with a loss deducted by the taxpayer on the disposition of his former residence.
XXXX
It is our view that when XXXX came to Canada, his personal residence in XXXX ceased to be a personal-use property because it was no longer being used primarily for his personal enjoyment or use (paragraph 54(f)). Subsection 48(3) would apply to determine his cost when he arrived in Canada so that his gain or loss on disposition would be hinged to this amount. If a loss was, in fact, incurred it will be necessary to deter- mine the portion of this loss which relates to the building, since a terminal loss may have been incurred.
We agree that the rental income received from the property was incidental to the taxpayer's main purpose - which was to sell it at his earliest opportunity. The fact that it was rented, however, would also serve to remove it from the personal-use category and generate the application of Section 45.
Please let us know if there is any additional information you have in this connection.
Chief Audit Applications Section
LLB:wa
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© Her Majesty the Queen in Right of Canada, 1984
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© Sa Majesté la Reine du Chef du Canada, 1984
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