Words and Phrases - "ordinarily reside"
25 April 2008 External T.I. 2008-0274401E5 F - Crédit d'impôt pour enfant
Regarding a query as to the meaning of "ordinarily reside" and "throughout the … year" in s. 118(1)(b.1), CRA stated:
Thomson … held that a person is ordinarily resident at the place where in the ordinary course of his life he regularly, normally or customarily lives. …
[S]ubsection 118(9.1) states that in the case of a child who in a taxation year is born, adopted or dies, the reference to “throughout the taxation year” in subparagraph 118(1)(b.1)(i) is to be read as a reference to “throughout the portion of the taxation year that is after the child’s birth or adoption or before the child’s death”.
Given this clarification, we are of the view that the expression "throughout the year" must be given its literal meaning, which implies that the conditions must be satisfied at any time during the taxation year, i.e. from January 1 to December 31 (except in the circumstances described in subsection 118(9.1)).
12 November 2013 External T.I. 2012-0471621E5 F - Moving expenses - eligible relocation
In 2013, the taxpayer and spouse moved from Residence A to furnished accommodation (Residence B) in order for the taxpayer’s spouse to attend a full-time program at a university in Canada. In 2014, in order for the spouse to take up a new job, they will move from Residence B to Residence C. In the meantime, they wish transport their furniture to Residence C for storage there.
What is the deductibility of expenses incurred in 2013 of moving between Residence A and Residence B taking into account a temporary stop at Residence C, and of transporting furniture between Residences A and Residence and storing it there - as well as of mtravel expenses that will be incurred in 2014 between Residence B and Residence C?
After noting that “the expression ‘ordinarily resided’ must be interpreted in accordance with its ordinary meaning and does not refer to a special or occasional residence,” and listing nine indicia of ordinarily residing at a place, CRA stated:
[I]n the case of multiple moves, each move must be considered separately to determine if it constitutes an "eligible relocation"… .
For example, consider a taxpayer living in Canada who moves from Residence 1 to Residence 2 to take up new employment. The taxpayer remains in Residence 2 for a few months before moving again to Residence 3. …
If it is established on the facts that the taxpayer ordinarily occupied Residences 1, 2, and 3, the move from Residence 1 to Residence 2 is considered a relocation, and that from Residence 2 to Residence 3 as a second relocation. Consequently, it will be necessary to determine whether each of these two relocations is an "eligible relocation"… .
If ... the taxpayer did not ordinarily reside at Residence 2 before ordinarily residing at Residence 3, we will consider that a single relocation from Residence 1 to Residence 3 occurred, and that relocation took place in two stages. If this relocation is an eligible relocation, the eligible relocation expenses of the move from Residence 1 to Residence 3 would be deductible in computing the taxpayer's income, provided that all of the conditions in sections 62 and 67 are satisfied. Since only one eligible relocation took place, the expenses related to the move from Residence 1 to Residence 2 and those related to the move from Residence 2 to Residence 3 would also be deductible in computing the taxpayer's income provided that all the conditions in sections 62 and 67 are satisfied.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 62 - Subsection 62(3) - Paragraph 62(3)(a) | costs of moving pets by air could qualify | 84 |
| Tax Topics - Income Tax Act - Section 62 - Subsection 62(3) - Paragraph 62(3)(b) | moving furniture to ultimate residence could qualify if not ordinarily residing at intermediate residence | 269 |
| Tax Topics - Income Tax Act - Section 62 - Subsection 62(3) | reasonable gas expenses but not car tune-up costs can qualify | 81 |
15 December 2014 Internal T.I. 2012-0445361I7 F - Remboursement de frais de déménagement
Before indicating that the question of whether the reimbursement of expenses of selling a residence at Location 1 in Canada, which had continued to be held by an employee after his relocation to a job abroad at Location 2, could be treated as a taxable benefit if such residence was sold at the time the employee was relocated again to another location and position abroad at Location 3, turned on whether he should be considered to ordinarily reside at Location 2, CRA indicated that the terms "ordinarily reside" and "ordinarily resident" have the same meaning and that “the notion of ‘ordinarily reside’ relates more to everyday life than to the permanent nature of the situation,” and then listed the following indicators as to whether a taxpayer "ordinarily resides" at a particular new location:
• the relocation of the taxpayer and the members of his or her household with their belongings, furniture and other items in their household to the new location.
• the availability of the former residence, that is to say if it was sold, rented, or if it has been advertised for sale or rent (if the taxpayer is the owner ), or if the lease was terminated (if the taxpayer is the lessee).
• the chosen residence at the new location accords with the ordinary lifestyle and needs of the taxpayer (for example, if the taxpayer would be able to live in the new residence for an indefinite period or if instead it is a hotel room or a room in a friend’s home).
• the transfer of banking services of the taxpayer and the taxpayer's other financial arrangements (including insurance policies) from the old to the new location.
• changing the taxpayer’s driver’s licence and registration certificates for non-commercial vehicles (to satisfy the requirements of the new location or to report the new residence address).
• a change in health care coverage to the new location.
• the transfer of certain services from the old to the new location (e.g., subscriptions to newspapers or magazines, cable, internet, and telephone services).
• the transfer of social relationships and other interests, from the old to the new location (such as participation in recreational, social, political or religious activities, and membership in personal or professional organizations).
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | reimbursement of moving expenses not a taxable benefit if such moving expenses otherwise deductible under s. 62 which, in the case of multiple moves, can turn on whether there is ordinary residence at each location | 436 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Eligible Relocation | expenses re selling a Canadian home after a 2nd relocation abroad are non-deductible if no ordinary residence at 1st location abroad | 263 |