,canada ,cu/oms                       #a
& ,rev5ue ,ag5cy

          ,9t]pret,n ,bullet9
    
,subject3 ,9come ,tax ,act
  ,[n]%ip ( ,prop]ty 7,pr9cipal
  ,resid;e7
,numb]3 ,,it-#dcg;,r
,date3 ,febru>y #ba1 #aiid
,ref];e3 ,p>agraph #ed7g7 & subsec;n
  #bdh7#c7 7al subsec;ns #dj7#g71
  #bdh7#bb7 & #bdh7#bc77

  ,9t]pret,n bullet9s 7,,it's7 provide
,rev5ue ,canada's te*nical 9t]pret,ns (
9come tax law4 ,due 6_! te*nical nature1
,,it's >e us$ prim>ily 0de"p;tal /aff1
tax speciali/s1 & o!r 9dividuals :o h an
9t]e/ 9 tax matt]s4 ,= ^? r1d]s :o pref]
a less te*nical explan,n (! law1 !
,de"p;t (f]s o!r public,ns1 s* z tax
guides & pamphlets4
  ,:ile ! ,,it's d n h ! =ce ( law1 !y c
g5],y 2 reli$ ^u z reflect+ !         #a
              ,,it-#dcg;,r           a#a
,de"p;t's 9t]pret,n (! law 6be appli$ on
a 3si/5t basis 0de"p;tal /aff4 ,9 cases
": an ,,it has n yet be5 revis$ 6reflect
legislative *anges1 r1d]s %d ref] 6!
am5d$ legisl,n & xs e6ective date4
,simil>ly1 c\rt deci.ns subsequ5t 6!
date (! ,,it %d 2 3sid]$ :5 det]m9+ !
relevancy (! -;ts 9 ! ,,it4
  ,an 9t]pret,n describ$ 9 an ,,it
applies z (! date ! ,,it is publi%$1
un.s o!rwise specifi$4 ,:5 "! is a *ange
9 a previ\s 9t]pret,n &! *ange is
b5eficial 6taxpay]s1 x is usu,y e6ective
= all future assess;ts & reassess;ts4
,if ! *ange is n fav\ra# 6taxpay]s1 x w
norm,y 2 e6ective =! curr5t & subsequ5t
tax,n ye>s or = transac;ns 5t]$ 96af !
date (! ,,it4
  ,a *ange 9 a de"p;tal 9t]pret,n may al
2 ann\nc$ 9 ! ,9come ,tax ,te*nical
,news4
  ,if y h any -;ts reg>d+ matt]s 4cuss$
9 ? ,,it1 pl1se s5d !m to3
                                      #b
              ,,it-#dcg;,r           b#a
  ,director1 ,busi;s & ,public,ns
    ,divi.n
  ,9come ,tax ,rul+s ,directorate
  ,policy & ,legisl,n ,bran*
  ,rev5ue ,canada
  ,ottawa ,,on ,k#a;,a #j;,l#e
  
  ,9t]pret,n bullet9s c 2 f.d on !
,rev5ue ,canada ,9t]net site at3
_+www.rc.gc.ca_:

                 ,3t5ts
    
,applic,n
,summ>y
,4cus.n & ,9t]pret,n
  ,g5]al 7p>agraphs #a-ag7
,explan,n ( ,*anges





                                      #c
               ,applic,n             c#a
    
  ,? bullet9 c.els & replaces ,9t]pret,n
,bullet9 ,,it-#dcg1 ,[n]%ip ( ,dwell+
,prop]ty1 dat$ ,septemb] #aj1 #aigi4

                ,summ>y
    
  ,? bullet9 provides guidel9es =
det]m9+ [n]%ip ( prop]ty = purposes (
claim+ a pr9cipal resid;e exemp;n4 ,!
bullet9 %d 2 r1d 9 3junc;n )! curr5t
v].n ( ,,it-#abj1 ,pr9cipal ,resid;e1 :
fully 4cusses ! pr9cipal resid;e
exemp;n1 9clud+ ! types ( prop]ty :
qualify = t exemp;n4
  ,! 3cepts ( 8b5eficial [n]%ip0 &
8legal [n]%ip0 z recogniz$ "u ! -mon law
jurisdic;ns >e 4cuss$ 9 ? bullet94 ,al
4cuss$ >e provi.ns 9 ! ,9come ,tax ,act
: "picul>ly relate 6! prov9ce ( ,quebec
2c x is a civil law jurisdic;n4
  ,! bullet9 al 3ta9s -;ts 3c]n+
memb]%ip 9 a corpor,n or associ,n hold+
resid5tial prop]ty 79clud+ co-        #d
              ,,it-#dcg;,r           d#a
op]ative h\s+ corpor,ns71 z well z -;ts
reg>d+ 3dom9iums1 agree;ts = sale1 l1se-
op;n agree;ts & o!r relat$ topics4
  ,! f9al two p>agraphs (! bullet9
briefly m5;n rules t >e relevant if !
prop]ty is held 0a p]sonal tru/1 9clud+
a sp\sal tru/1 & ref] ! r1d] 6o!r
mat]ials publi%$ 0! ,de"p;t : set \ ^?
rules4

          ,4cus.n & ,9t]pret,n
    
        ,g5]al 7p>agraphs #a-ag7
    
#a4 ,p>agraph #ed7g7 (! ,9come ,tax
  ,act1 : det]m9es :e!r a prop]ty is a
  taxpay]'s 8pr9cipal
--------------------------------------#b
  resid;e0 =a "picul> tax,n ye>1
  requires t ! prop]ty 2 [n$ 0! taxpay]
  at any "t 9 ! ye>4 7,all (!
  require;ts1 9clud+ ? [n]%ip require;t1
  t m/ 2 satisfi$ = purposes ( claim+ !
  pr9cipal resid;e exemp;n >e         #e
              ,,it-#dcg;,r           a#b
  4cuss$ 9 ! curr5t v].n ( ,,it-#abj1
  ,pr9cipal ,resid;e47 ,! ,act does n
  def9e ! t]m 8[n$02 h["e1 = purposes (
  claim+ ! pr9cipal resid;e exemp;n1 !
  [n]%ip require;t 9 p>agraph #ed7g7 is
  met ": ! taxpay] is ! legal [n] or !
  b5eficial [n] (! prop]ty4 ,^! t]ms >e
  4cuss$ 9 detail 2l4
#b4 ,9 ! -mon law jurisdic;ns1 two =ms (
  prop]ty [n]%ip >e recogniz$--legal &
  b5eficial4 ,norm,y 8legal [n]%ip0
  exi/s :5 title is transf]r$ to1
  record$ in1 regi/]$ 9 or o!rwise c>ri$
  9 ! "n (a p]son4 ,legal [n]s >e g5],y
  5titl$ 65=ce _! [n]%ip "rs ag/ all o!r
  p]sons4
#c4 ,"o p]son's legal [n]%ip (a prop]ty
  may1 h["e1 2 subject 6ano!r p]son's
  b5eficial [n]%ip ( t prop]ty4 ,! t]m
  8b5eficial [n]%ip0 is us$ 6describe !
  type ( [n]%ip (a p]son :o is 5titl$ 6!
  use & b5efit (! prop]ty :e!r or n t
  p]son has 3curr5t legal [n]%ip4 ,a
  p]son :o has b5eficial [n]%ip "rs   #f
              ,,it-#dcg;,r           b#b
  b n legal [n]%ip c 5=ce ^? "rs ag/ !
  hold] (! legal title4 ,= example1
  b5eficial [n]%ip frequ5tly >ises :5
  prop]ty is held 9 tru/ =a p]son 9
  circum/.es ":1 ac 6! t]ms (! tru/1 t
  p]son has au?or;y 69/ruct ! tru/ee
  6d1l )! prop]ty z reque/$4 7,": a
  p]sonal tru/1 9clud+ a sp\sal tru/1 is
  9volv$1 see al ! rules m5;n$ 9
  p>agraphs #af & #ag 2l47
#d4 ,b5eficial [n]%ip m/ 2 4t+ui%$1
  h["e1 f ! o!r types ( physical
  posses.n ( prop]ty : a p]son may 5joy4
  ,= example1 a t5ant (a prop]ty1 or a
  p]son :o is all[$ 6o3upy x only 2c !
  true [n] has no objec;n1 is n !
  b5eficial [n] (! prop]ty4 ,9 det]m9+
  :e!r a p]son has b5eficial [n]%ip1 "o
  %d 3sid] s* factors z ! "r 6posses.n1
  ! "r 6collect r5ts1 ! "r 6call =!
  mortgag+ (! prop]ty1 ! "r 6transf]
  title 0sale or 0w1 ! oblig,n 6repair1
  ! oblig,n 6pay prop]ty taxes & o!r
  relevant "rs & oblig,ns4 ,n all (   #g
              ,,it-#dcg;,r           c#b
  ^! 9cid5ts ( [n]%ip ne$ o3ur 3curr5tly
  2f x is 3clud$ t ! p]son has b5eficial
  [n]%ip (! prop]ty1 : is a "q ( fact 9
  ea* "picul> case 7subject 6any
  det]m9,n "u ! law reg>d+ b5eficial
  [n]%ip s* z1 = example1 9 ! mann]
  describ$ 9 p>agraphs #f1 #h or #i 2l74
#e4 ,s9ce 9 mo/ cases ! same p]son has
  bo? legal & b5eficial [n]%ip1 det]m9+
  [n]%ip on ! basis ( b5eficial [n]%ip
  al"o is n (t5 requir$4 ,-;ts 2l d1l )
  "s situ,ns ": a taxpay] is 3sid]$ 6[n1
  & o!r situ,ns ": a taxpay] is 3sid]$ n
  6[n1 a prop]ty = purposes (! pr9cipal
  resid;e exemp;n4
#f4 ,2c ! prov9ce ( ,quebec is a civil
  law jurisdic;n1 n a -mon law
  jurisdic;n1 subsec;n #bdh7#c7 (!
  ,9come ,tax ,act provides a special
  set ( rules = 9come tax purposes 9
  rel,n 6t prov9ce4 ,subsec;n #bdh7#c7
  deems
  7a7 a usufruct 7see p>agraph #g 2l72
  7b7 a "r ( use or habit,n2 or       #h
              ,,it-#dcg;,r           d#b
  7c7 a sub/itu;n 7see p>agraph #g 2l72
  
  6be a tru/4 ,! tru/ is deem$ 6be cr1t$
  0w ": 7a71 7b7 or 7c7 0 e/abli%$ 0w4
  ,! prop]ty subject to 7a71 7b7 or 7c7
  is deem$ 6h be5 transf]r$ to1 & 6be
  held 9 tru/ by1 ! tru/4 ,! transf] is
  deem$ 6h o3urr$ on1 & z a 3sequ;e (1 !
  d1? (! te/ator ": 7a71 7b7 or 7c7
  >ises on ! d1? ( t p]son4 ,if !
  prop]ty is ! type ( prop]ty t c
  o!rwise qualify z a pr9cipal resid;e
  7i4e41 a h\s+ unit1 l1sehold 9t]e/ or
  co-op]ative h\s+ corpor,n %>es--see !
  curr5t v].n ( ,,it-#abj & al p>agraph
  #aj 2l71 ! deem$ tru/ may 2 a# 6use !
  rules ref]r$ 6in p>agraph #ag 2l
  6claim ! pr9cipal resid;e exemp;n
  6reduce or elim9ate any ga9 t wd
  o!rwise o3ur 7= tax purposes7 z a
  result (a 4posi;n (! prop]ty4
  ,subsec;n #bdh7#c7 al deems any p]son
  :o has a "r 7:e!r imm or future & :e!r
  absolute or 3t+5t7 6rcv all or      #i
              ,,it-#dcg;,r           e#b
  any "p (! 9come or ! capital 9 respect
  ( prop]ty subject to 7a71 7b7 or 7c7
  6be a p]son :o is b5efici,y 9t]e/$ 9 !
  deem$ tru/4 ,f9,y1 subsec;n #bdh7#c7
  deems prop]ty 9 rel,n 6: any p]son
  has1 at any "t1
  7d7 ! "r ( [n]%ip2
  7e7 a "r z a lessee 9 an emphyteutic
    l1se 7see p>agraph #g 2l72 or
  7f7 a "r z a b5efici>y 9 a tru/
    79clud+ a "r z a deem$ b5efici>y (a
    deem$ tru/ describ$ abv72
  
  6be b5efici,y [n$ 0t p]son1 :e!r or n
  ! prop]ty is subject 6a s]vitude4
  ,?us1 if a p]son sells 8 or h] "rs )
  respect 6prop]ty : is subject to 7a71
  7b71 7c71 7d7 or 7e7 abv &! prop]ty xf
  is a prop]ty t c o!rwise qualify z a
  pr9cipal resid;e 7i4e41 a h\s+ unit1
  l1sehold 9t]e/ or co-op]ative h\s+
  corpor,n %>es71 t p]son mi<t 2 a# 6use
  ! pr9cipal resid;e exemp;n 6reduce or
  elim9ate any ga9 t wd o!rwise      #aj
              ,,it-#dcg;,r           f#b
  o3ur 7= tax purposes7 z a result ( t
  4posi;n ( "rs4 ,9 ord] = ? 6o3ur1 (
  c\rse1 all ! o!r require;ts ( p>agraph
  #ed7g71 z describ$ 9 ! curr5t v].n (
  ,,it-#abj1 wd h 6h be5 met4 7,=
  example1 ! 8ord9>ily 9habit$0
  require;t cd h be5 satisfi$ 0! p]son
  :o sold ! "rs ) respect 6! prop]ty
  hav+ 9habit$ ! prop]ty dur+ ! relevant
  ye>s47
#g4 ,"s (! legal t]ms us$ 9 p>agraph #f
  abv >e briefly expla9$ z foll[s3
    --,an .emphyteutic .l1se is a l1se (
      r1l prop]ty =a relatively l;g
      p]iod ( "t--z (! date ( issu.e ( ?
      bullet91 "! may 2 emphyteutic
      l1ses 9
--------------------------------------#c
      exi/;e 9 ! prov9ce ( ,quebec )
      t]ms rang+ any": f 8m ?an #i ye>s0
      6#ajj ye>s 9 l5g?4 ,dur+ ! t]m (!
      emphyteutic l1se1 ! lessee has !
      full b5efit & 5joy;t (! r1l
      prop]ty & "utakes 6make        #aa
              ,,it-#dcg;,r           a#c
      improve;ts 6! prop]ty &1 g5],y1
      6pay annual r5t 6! [n]4 ,! curr5t
      v].n ( ,,it-#cbd1 ,capital ,co/
      ,all[.e--,emphyteutic ,l1se1
      4cusses ? matt] 9 grt] detail4
    --,"u a .usufruct1 ! .usufructu>y
      has a "r 65joy all ! b5efits1
      advantages & pr(its ( prop]ty t is
      [n$ 0ano!r p]son4
    --,"u a .sub/itu;n1 a designat$
      p]son1 call$ ! .9/itute1 9h]its
      prop]ty "u a w1 or acquires x z a
      gift 9t] vivos1 b )a directive t
      he or %e % pass x ov] 6ano!r
      designat$ p]son1 :o is call$ !
      .sub/itute4
#h4 ,= purposes ( claim+ ! pr9cipal
  resid;e exemp;n =a prop]ty1 p>agraph
  #ed7g7 requires t ! taxpay] [n !
  prop]ty 8jo9tly ) ano!r p]son or
  o!rwise04 ,^! ^ws 9clude sole [n]%ip1
  jo9t t5ancy1 t5ancy-in-common & co-
  [n]%ip4 ,prov9cial laws relat+ 6m>ital
  prop]ty >e (t5 relevant 9          #ab
              ,,it-#dcg;,r           b#c
  det]m9+ ! [n]%ip ( prop]ty = ? purpose
  & %d1 "!=e1 2 3sid]$ al;g )! -;ts 9 ?
  bullet94 ,9 ! prov9ce ( ,quebec1 ! "q
  z 6:e!r sp\ses [n r1l prop]ty 8jo9tly
  ) ano!r p]son or o!rwise0 may dep5d ^u
  7a7 ! matrimonial prop]ty regime :
    applies 6!m 7e4g41 9volv+ -mun;y (
    prop]ty72
  7b7 ! family patrimony 7if applica#72
    or
  7c7 ! t]ms ( _! m>riage 3tract4
  
  ,x %d 2 not$1 h["e1 t subsec;ns
  #bdh7#bb7 & 7#bc7 (! ,9come ,tax ,act
  3ta9 provi.ns t c 8deem0 7det]m9e7 =
  purposes (! ,act : sp\se is ! [n] (a
  prop]ty at any "picul> "t af ,july
  #ac1 #aiij if ! prop]ty is or 0 !
  subject (a matrimonial prop]ty regime
  9 ,quebec 7or ano!r civil law
  jurisdic;n7 9volv+ "s -mon 9t]e/ 2t !
  sp\ses1 s* z -mun;y ( prop]ty4 ,=
  fur!r 4cus.n on ^! provi.ns1 see !
  curr5t v].n ( ,,it-#cbe1           #ac
              ,,it-#dcg;,r           c#c
  ,prop]ty ,transf]s ,af ,sep>,n1
  ,divorce & ,annul;t4
#i4 ,:5 a taxpay]'s [n]%ip ( prop]ty is
  9 4pute or 9 d\bt1 he or %e may resort
  6! c\rts =a resolu;n (! "q4 ,9 a
  situ,n 9volv+ a m>riage 4solu;n1 =
  example1 "o sp\se may reque/ ! c\rts
  6resolve ! [n]%ip ( prop]ty 3sid]$ 6be
  [n$ 0! o!r sp\se4 ,9 s* a case1 ": !
  f/-m5;n$ sp\se acquires [n]%ip
  pursuant 6a c\rt ord]1 s* [n]%ip w
  g5],y 2 3sid]$ 6h be5 acquir$ on !
  e6ective date specifi$ 9 ! c\rt ord]
  reg>d.s (! legal basis or r1sons =!
  ord]1 or on s* o!r date z is 3sid]$
  r1sona# if no e6ective date is
  specifi$ 9 ! ord]4
#aj4 ,a %>e 9 ! capital /ock (a co-
  op]ative h\s+ corpor,n c qualify z a
  pr9cipal resid;e prop]ty provid$ t !
  %>e 0 acquir$ =! sole purpose ( obta9+
  ! "r 69habit a h\s+ unit [n$ 0!
  corpor,n &! o!r require;ts ( p>agraph
  #ed7g71 z 4cuss$ 9 ! curr5t v].n   #ad
              ,,it-#dcg;,r           d#c
  ( ,,it-#abj1 >e met4 ,9 any ev5t1 ": a
  corpor,n or an associ,n =m$ solely
  6hold resid5tial prop]ty is re,y a b>e
  tru/ee (! prop]ty &! t]ms (! tru/
  >range;t give ! b5efici>y1 i4e41
  %>ehold] (! corpor,n or memb] (!
  associ,n1
  7a7 ! same "rs ( posses.n & use (a
    "picul> h\s+ unit z ! b5eficial [n]
    ( any h\s+ unit wd norm,y 5joy1 &
  7b7 ! "r 6require ! corpor,n or
    associ,n 6d1l )! h\s+ unit 7e4g41
    sell or mortgage x7 z 9/ruct$ 0!
    %>ehold] or memb]1
  
  ! %>ehold] or memb] is 3sid]$ 6be !
  b5eficial [n] (! h\s+ unit4 ,^! -;ts d
  n apply 6[n]%ip (a 3dom9ium unit t
  usu,y ve/s 9 ! p]son acquir+ x4 ,h["e1
  see p>agraph #ab 2l 3c]n+ ! "t (
  acquisi;n ( [n]%ip (a 3dom9ium unit4
#aa4 ,a pur*as]'s 9t]e/ 9 prop]ty "u an
  5=cea# agree;t = sale w1 subject
  6p>agraph #ab 2l1 2 3sid]$         #ae
              ,,it-#dcg;,r           e#c
  63/itute [n]%ip (! prop]ty4 ,a
  pur*as]'s 9t]e/ 9 a h\se b"\ "u !
  ,vet]ans ,l& ,act w al 2 3sid]$ 6be
  [n]%ip ( prop]ty4 ,9 ^! 9/.es1 !
  taxpay] has made a d[n pay;t & 5t]$
  96an oblig,n 6make mon?ly pay;ts4 ,:5
  ! total pur*ase price is pd1 ! taxpay]
  is 5titl$ 6acquire title 9 8 or h] "n4
#ab4 ,:5 acquir+ a resid5tial 3dom9ium
  unit1 x is n unusual =a taxpay] 6make
  a d[n pay;t1 65t] 96an agree;t (
  pur*ase & sale1 65t] 96an o3upancy
  agree;t & 6take posses.n prior 6!
  regi/r,n (! 3dom9ium4 ,! o3upancy
  agree;t may provide = pay;ts : reflect
  ! c>ry+ co/s (! 3dom9ium until !
  pur*ase transac;n c 2 -plet$4 ,norm,y
  9 s* a situ,n1 ! taxpay] does n [n 7ei
  b5efici,y or leg,y7 ! 3dom9ium unit
  until ! 3dom9ium is regi/]$ "u !
  relevant prov9cial legisl,n &! pur*ase
  transac;n has clos$4
#ac4 ,a taxpay] may 9 "s cases 2 3sid]$
  6[n1 = purposes (! pr9cipal        #af
              ,,it-#dcg;,r           f#c
  resid;e exemp;n1 a h\s+ unit situat$
  on l& n [n$ 0! taxpay] 9 circum/.es
  ":1 0r1son (! law or ac 6! t]ms (!
  l1se1 he or %e has a l1sehold 9t]e/ 9
  ! l&4 ,? c o3ur1 = example1 9 any (!
  foll[+ circum/.es3
  7a7 ! taxpay] is assign$ ! l1sehold
    9t]e/ 9 gov]n;t-[n$ l& & pays a
    build] 63/ruct a h\se on ! l&1
  7b7 ! taxpay] builds a h\se on l1s$
    l&1 or
--------------------------------------#d
  7c7 ! taxpay] 8pur*ases0 7i4e41 pays
    :at am.ts 6a pur*ase price =7 a h\se
    on l1s$ l&4
#ad4 ,a taxpay] :o o3upies a h\s+ unit
  "u a g5u9e l1se-op;n agree;t is n
  3sid]$ 6be ! [n] (! h\s+ unit4 ,on !
  o!r h&1 ! taxpay] is 3sid]$ 6be !
  b5eficial [n] (! h\s+ unit ": !
  agree;t is a 3di;nal sales 3tract4 ,x
  is alw a "q ( fact1 bas$ on ! writt5
  t]ms (! agree;t z well z ! circum/.es
  "u : x is made &! mann] 9 : x is   #ag
              ,,it-#dcg;,r           a#d
  execut$1 z 6:e!r ! agree;t is actu,y a
  l1se =! prop]ty ) an op;n 6buy or an
  agree;t = sale4 ,! curr5t v].n (
  ,,it-#bcc1 ,l1se-,op;n ,agree;ts2
  ,sale-,l1seback ,agree;ts1 4cusses ?
  subject 9 grt] detail4
#ae4 ,a taxpay] acquires [n]%ip (
  prop]ty 0way ( gift or 9h]it.e on !
  date he or %e obta9s a "r 6possess !
  prop]ty = 8 or h] 5joy;t4
#af4 ,": a p]sonal tru/1 9clud+ a sp\sal
  tru/1 4tributes a prop]ty 6a b5efici>y
  :o subsequ5tly 4poses (! prop]ty1 !
  b5efici>y may 2 deem$ 0subsec;n
  #dj7#g71 =! purposes ( claim+ !
  pr9cipal resid;e exemp;n1 6h [n$ !
  prop]ty s9ce ! tru/ la/ acquir$ x4 ,an
  illu/r,n ( h[ ? provi.n "ws is 3ta9$ 9
  ! curr5t v].n ( ,,it-#abj4
#ag4 ,z 9dicat$ 9 p>agraph #a abv1 !
  [n]%ip require;t =! pr9cipal resid;e
  exemp;n 3ta9$ 9 p>agraph #ed7g7 c 2
  met 0! legal [n] (! prop]ty4 ,? is s
  ev5 ": ! legal [n]1 e4g41 a        #ah
              ,,it-#dcg;,r           b#d
  tru/1 is n ! b5eficial [n]4 ,h["e1 z
  4cuss$ 9 ! curr5t v].n ( ,,it-#abj1 "!
  >e o!r require;ts t m/ 2 satisfi$ =a
  taxpay] 6be a# 6claim ! pr9cipal
  resid;e exemp;n4 ,"! >e special
  provi.ns 9 ! ,act : make x possi# =
  any p]sonal tru/1 9clud+ a sp\sal
  tru/1 6claim ! pr9cipal resid;e
  exemp;n if x 4poses (! prop]ty4 ,= m
  9=m,n on ^! rules1 see ,=m ,t#ajgi1
  ,design,n (a ,prop]ty z a ,pr9cipal
  ,resid;e 0a ,p]sonal ,tru/4











                                     #ai
          ,explan,n ( ,*anges         #e
    
               ,9troduc;n
    
  ,! purpose (! ,explan,n ( ,*anges is
6give ! r1sons =! revi.ns 6an 9t]pret,n
bullet94 ,x \tl9es revi.ns t we h made z
a result ( *anges 6! law1 z well z
*anges reflect+ new or revis$ de"p;tal
9t]pret,ns4

                ,ov]view
    
  ,? bullet9 4cusses [n]%ip ( prop]ty =
purposes ( claim+ ! pr9cipal resid;e
exemp;n4
  ,we h revis$ ! bullet9 prim>ily3
    --2c ( *anges1 9 ,s4,c4 #aiia1 c4
      #di 7=m]ly ,bill ;,c-#ah71
      6provi.ns 9 ! ,9come ,tax ,act t
      p]ta9 6! [n]%ip ( prop]ty 9 !
      prov9ce ( ,quebec2 &
    --64cont9ue ! 4cus.n ( [n]%ip (
      prop]ty z x p]ta9$ 6! ,regi/]$
                                     #bj
              ,,it-#dcg;,r           a#e
      ,home ,[n]%ip ,sav+s ,plan
      7,,rhosp7 rules1 : h be5 rep1l$4
  ,! -;ts 9 ! bullet9 >e n a6ect$
0propos$ am5d;ts 6! ,9come ,tax ,act
3ta9$ 9 ,bill ;,c-#i1 : rcvd f/ r1d+ 9 !
,h\se ( ,-mons on ,febru>y #d1 #aiid1 or
9 ! draft legisl,n rel1s$ on ,augu/ #cj1
#aiic 7a ,bill = ? legisl,n w likely 2
9troduc$ 9 ! ,h\se 9 ! curr5t ses.n (
,p>lia;t74

      ,legislative & ,o!r ,*anges
    
  ,new p>agraph #a 7replaces old
p>agraph #a73 ,! 9troduc;n 9 new
p>agraph #a replaces ! 9troduc;n f.d 9
old p>agraph #a & "p (! f/ s5t;e ( old
p>agraph #b4 ,! old 9troduc;n 9dicat$ t
! t]m 8[n]%ip0 9 ! ,9come ,tax ,act %d 2
giv5 ! m1n+ ( 8b5eficial [n]%ip04 ,?
posi;n 0 "picul>ly important 9 apply+ !
,,rhosp rules4 ,9 new p>agraph #a1 we h
remov$ ! ref];e 6! rep1l$ ,,rhosp
provi.n & h n[ 9dicat$ t ! [n]%ip    #ba
              ,,it-#dcg;,r           b#e
require;t "u ! pr9cipal resid;e rules is
met ": ! taxpay] is ! legal [n] or !
b5eficial [n] (! prop]ty4 7,! ref];e to
8legal [n]%ip0 is significant :5 !
prop]ty is held 0a p]sonal tru/1 z
briefly m5;n$ lat] 9 ! bullet947
  ,new p>agraphs #b 6#e 7replace old
p>agraph #b73 ,we h split up old
p>agraph #b 96new p>agraphs #b 6#e =
easi] r1d+4 ,^! p>agraphs describe &
-p>e 8legal [n]%ip0 & 8b5eficial [n]%ip0
z ^? two t]ms >e us$ 9 -mon law
jurisdic;ns4 ,we h made "s ^w+ *anges &
re>rang$ "s (! s5t;es = purposes (
cl>ific,n only1 )\t *ang+ ! sub/.e ( :at
0 sd 9 old p>agraph #b4
  ,new p>agraphs #f & #g 7replace mo/ (
old p>agraph #c73 ,^! p>agraphs replace
! major "p ( old p>agraph #c4 ,new
p>agraph #f 4cusses ! pr9cipal resid;e
exemp;n 9 rel,n 6a resid;e prop]ty : is
subject 6subsec;n #bdh7#c7 z am5d$ "u
,bill ;,c-#ah4 ,t provi.n specific,y
gov]ns ! 9come tax tr1t;t (          #bb
              ,,it-#dcg;,r           c#e
prop]ty subject 6c]ta9 types ( legal
rel,n%ips 9 ! prov9ce ( ,quebec1 : is a
civil law jurisdic;n4 ,! explan,ns f.d 9
new p>agraph #g ( ?ree ( ^! types (
legal rel,n%ips >e ess5ti,y ! same z f.d
9 old p>agraph #c4
  ,new p>agraph #h 7replaces old
p>agraphs #aa & #ad &! second s5t;e (
old p>agraph #c73 ,! f/ ?ree s5t;es (
new p>agraph #h >e simil> 6old p>agraphs
#aa & #ad except t !y d n 3ta9 a ref];e
6! rep1l$ ,,rhosp provi.n & !y n[ tie 9
m specific,y )! pr9cipal resid;e rules4
,! f\r? s5t;e ( new p>agraph #h is
simil> 6! second s5t;e ( old p>agraph
#c4 ,! la/ "p ( new p>agraph #h m5;ns
provi.ns a4$ 6! ,9come ,tax ,act "u
,bill ;,c-#ah t c deem : ( two sp\ses is
! [n] ( c]ta9 prop]ty 9 ,quebec & ref]s
! r1d] 6ano!r bullet9 : 4cusses ^!
provi.ns 9 detail4
  ,new p>agraph #i 7replaces old
p>agraph #ac73 ,! ^ws 9 ! la/ s5t;e (
old p>agraph #ac 8or on ! date on    #bc
              ,,it-#dcg;,r           d#e
: ! ord] is made if no e6ective date is
specifi$ 9 ! ord]0 reflect$ an
adm9i/rative posi;n t 0 fav\ra# 6"s
taxpay]s = purposes (! ,,rhosp rules4
,h["e1 z ! ,,rhosp legisl,n has be5
rep1l$ &! abv-m5;n$ adm9i/rative posi;n
cd actu,y 2 unfav\ra# 9 "s cases =
purposes ( claim+ ! pr9cipal resid;e
exemp;n1 x is replac$ 9 new p>agraph #i
)! ^ws 8or on s* o!r date z is 3sid]$
r1sona# if no e6ective date is specifi$
9 ! ord]04
  ,new p>agraph #aj 7replaces old
p>agraph #d73 ,? p>agraph has be5 revis$
6m specific,y tie 9 )! pr9cipal resid;e
rules4 ,al1 ! -;ts 9 old p>agraph #d t 7
"picul>ly relevant =! rep1l$ ,,rhosp
rules h n be5 3t9u$ 9 new p>agraph #aj4
  ,old p>agraph #e3 ,? p>agraph is n
3t9u$ 9 ! new bullet9 2c ! ,,rhosp
legisl,n has be5 rep1l$ & 2c ! p>agraph
n[ has ll1 if any1 relev.e ) respect
6pr9cipal resid;es 2c (! rules m5;n$ 9
                                     #bd
              ,,it-#dcg;,r           e#e
new p>agraphs #af & #ag t c apply ": !
prop]ty is held 0a p]sonal tru/4
  ,new p>agraphs #aa 6#ad 7replace old
p>agraphs #f 6#i73 ,we h made "s ^w+
*anges = purposes ( cl>ific,n only4
  ,old p>agraph #aj3 ,? p>agraph 0
writt5 specific,y ) reg>d 6! rep1l$
,,rhosp provi.ns & is "!=e n 9clud$ 9 !
new bullet94
  ,new p>agraph #ae 7replaces old
p>agraph #ab73 ,"! h be5 "s ^w+ *anges =
purposes ( cl>ific,n only4
  ,new p>agraphs #af & #ag3 ,^!
p>agraphs briefly m5;n rules1 5act$ "u
,bills ;,c-#gb & ;,c-#ib1 t c apply =
purposes (! pr9cipal resid;e exemp;n ":
! prop]ty has be5 held 0a p]sonal tru/1
9clud+ a sp\sal tru/4 ,! r1d] is !n
ref]r$ 6o!r mat]ials publi%$ 0! ,de"p;t
t set \ ^! rules4



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