noobbeautiful.blogg.se

The principal residence can include land upon which a housing unit is situated if the land contributes to the “use and enjoyment of the housing unit as a residence”. Furthermore, properties occupied for a portion of the year because they were purchased late or sold early in the year will also qualify. For example, a summer cottage or winter home which is used (by the owner) for a portion of the year (ie a period of two weeks appears to qualify), could meet the definition of “ordinarily inhabited”. The CRA has adopted a very liberal approach as far as administering what is meant by the term “ordinarily inhabited”. be “ordinarily inhabited” during the year by the individual, the individual’s spouse or former spouse, or the individual’s dependant child.The Canada Revenue Agency (CRA) interprets the term housing unit as being a house, an apartment, condominium or cottage, a mobile home or houseboat and be a housing unit, a leasehold interest therein, or a share of stock of the co-operative housing corporation.In order for a property to qualify as a principal residence during any particular year it must: In practice, however, the vast majority of individuals who sell their principal residence will merely ignore the requirement to file the proper forms under the assumption that the sale is not taxable. The Income Tax Act requires the individuals to file a prescribed form with their income tax return for the year in which the principal residence is sold. Principal Residence Most individuals who sell real estate are aware that a sale of a principal residence does not attract income tax.