Words and Phrases - "continuous occupancy"

Application of GST/HST policy on meaning of continuous occupancy

What is continuous occupancy

The CRA has guidelines and criteria under the goods and services tax/harmonized sales tax (GST/HST) to determine whether an individual has continuous occupancy of real property. The CRA intends to use similar guidelines and criteria for the underused housing tax.

Generally, if an individual has the right to occupy a dwelling unit for a period on a continuous basis (that is, without interruption throughout the period), the individual has continuous occupancy of the dwelling unit for the period. An individual’s continuous occupancy of the dwelling unit for a period is not necessarily interrupted by the individual’s physical absence from the dwelling unit at a time in the period if both of the following apply:

• the individual still has the right to occupy the dwelling unit throughout their physical absence
• the right to occupy the dwelling unit is not given to another individual for any period during the physical absence

Tests varying on whether an individual owner and whether a written lease

No day can be counted more than once

As explained above, if you are an affected owner that:

• is an individual, you can determine if there is a qualifying occupancy period for your ownership of a residential property as explained under one of the following headings:
  
  • Type 1 qualifying occupants – individuals having agreements evidenced in writing
  • Type 2 qualifying occupants – individual owners and their family
• is not an individual (such as a corporation), you can determine if there is a qualifying occupancy period for your ownership of a residential property only under the heading Type 1 qualifying occupants – individuals having agreements evidenced in writing

In either case, your ownership of the residential property does not qualify for the exemption for qualifying occupancy unless at least 180 days in a calendar year are included in one or more qualifying occupancy periods for your ownership of the residential property.

You cannot count a day more than once to determine if at least 180 days in a calendar year are included in one or more qualifying occupancy periods of a residential property.