I-3 - Taxation Act

Section 274 Disposition versions

2021-06-02

274. In this Title, “principal residence” of an individual, other than a personal trust, for a taxation year means a particular property that is a housing unit, a leasehold interest in a housing unit or a share of the capital stock of a housing cooperative acquired for the sole purpose of acquiring the right to inhabit a housing unit owned by the cooperative if, in every case, the particular property is owned in the year by the individual, whether alone or jointly with another person, and the condition set out in the second paragraph and one of the following conditions are met:

(a)  the housing unit is ordinarily inhabited in the year by the individual, his spouse or former spouse or his child; or

(b)  the individual has made

i.  an election referred to in the first paragraph of section 284 that relates to the change in use of the particular property in the year or a preceding taxation year, other than such an election in relation to which the second paragraph of that section applies for the year or a preceding taxation year, or

ii.  an election referred to in the first paragraph of section 286.1 that relates to a change in use of the particular property in a subsequent taxation year.

The condition referred to in the first paragraph consists in the particular property having been designated by the individual, in accordance with the fifth paragraph, as being the individual’s principal residence for the year and in no other property having been designated, for the purposes of this section and of sections 274.0.1, 275.1, 277 and 285, for the year by

(a)  where the year is before 1982, the individual; or

(b)  where the year is after 1981,

i.  the individual,

ii.  a person who was throughout the year the individual’s spouse, other than a spouse who was throughout the year living separate and apart from the individual pursuant to a judicial separation or a written separation agreement,

iii.  a person who was the individual’s child, other than a child who was at any time in the year a married person or a person 18 years of age or over, or

iv.  where the individual was not at any time in the year a married person or a person 18 years of age or over, a person who was the individual’s father or mother, or brother or sister, where that brother or sister was not at any time in the year a married person or a person 18 years of age or over;

(c)  (subparagraph repealed);

(d)  (subparagraph repealed).

Subject to the fourth paragraph, a particular property may be designated as principal residence under this section for a taxation year only if the particular property was the subject of a valid designation under paragraph c of the definition of “principal residence” in section 54 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)) for the year; however, if a designation made under that paragraph c for the year is in respect of a property that is not identical to the particular property but that includes it, in whole or in part, or is included, in whole or in part, in that property, the Minister may determine to what extent the designation made in respect of the particular property under this section for the year is valid.

Despite the third paragraph, if the Minister considers it appropriate in the circumstances, the Minister may agree to have a particular property designated as principal residence by an individual, under this section, for a particular taxation year even though the particular property was not the subject of a valid designation by the individual under paragraph c of the definition of “principal residence” in section 54 of the Income Tax Act for the particular year where

(a)  the following conditions are met:

i.  the individual disposed, in a taxation year that ended before 3 October 2016, of a property other than the particular property,

ii.  the individual was resident in Québec at the end of the taxation year in which the other property was disposed of, and

iii.  the particular taxation year is a taxation year in respect of which the other property was the subject of a valid designation by the individual under paragraph c of the definition of “principal residence” in section 54 of the Income Tax Act and could be the subject of a designation under this section by the individual for the particular taxation year, but was not the subject of such a designation; or

(b)  the particular taxation year is a taxation year that precedes the taxation year in which the particular property is disposed of and

i.  a valid designation was made by the individual under paragraph c of the definition of “principal residence” in section 54 of the Income Tax Act in respect of another property for the particular taxation year, and

ii.  the Minister was of the opinion that the other property could not be the subject of a designation by the individual under this section for the particular taxation year.

An individual designates a particular property as the individual’s principal residence for a particular taxation year by enclosing the prescribed form containing prescribed information with the fiscal return the individual is required to file under section 1000 for the individual’s taxation year in which the individual disposed of the particular property or granted an option to purchase it.

1972, c. 23, s. 254; 1973, c. 17, s. 26; 1975, c. 21, s. 5; 1977, c. 26, s. 26; 1984, c. 15, s. 64; 1986, c. 15, s. 55; 1986, c. 19, s. 47; 1989, c. 5, s. 57; 1994, c. 22, s. 128; 1997, c. 3, s. 71; 1997, c. 85, s. 330; 2000, c. 5, s. 71; 2004, c. 8, s. 52; 2009, c. 5, s. 92; 2021, c. 14, s. 38.

2005-05-15

274. In this Title, “principal residence” of an individual, other than a personal trust, for a taxation year means a particular property that is a housing unit, a leasehold interest in a housing unit or a share of the capital stock of a housing cooperative acquired for the sole purpose of acquiring the right to inhabit a housing unit owned by the cooperative if, in every case, the particular property is owned in the year by the individual, whether alone or jointly with another person, and the condition set out in the second paragraph and one of the following conditions are met:

(a)  the housing unit is ordinarily inhabited in the year by the individual, his spouse or former spouse or his child; or

(b)  the individual has made

i.  an election referred to in the first paragraph of section 284 that relates to the change in use of the particular property in the year or a preceding taxation year, other than such an election in relation to which the second paragraph of that section applies for the year or a preceding taxation year, or

ii.  an election referred to in the first paragraph of section 286.1 that relates to a change in use of the particular property in a subsequent taxation year.

The condition referred to in the first paragraph consists in the particular property having been designated by the individual, in accordance with the third paragraph, as being his principal residence for the year and in no other property having been designated, for the purposes of this section and of sections 274.0.1, 275.1, 277 and 285, for the year by

(a)  where the year is before 1982, the individual; or

(b)  where the year is after 1981,

i.  the individual,

ii.  a person who was throughout the year the individual’s spouse, other than a spouse who was throughout the year living separate and apart from the individual pursuant to a judicial separation or a written separation agreement,

iii.  a person who was the individual’s child, other than a child who was at any time in the year a married person or a person 18 years of age or over, or

iv.  where the individual was not at any time in the year a married person or a person 18 years of age or over, a person who was the individual’s father or mother, or brother or sister, where that brother or sister was not at any time in the year a married person or a person 18 years of age or over;

(c)  (subparagraph repealed);

(d)  (subparagraph repealed).

The designation referred to in the second paragraph shall be made in the fiscal return the individual is required to file under section 1000 for his taxation year during which he has either disposed of, or has granted an option to purchase, the particular property.

1972, c. 23, s. 254; 1973, c. 17, s. 26; 1975, c. 21, s. 5; 1977, c. 26, s. 26; 1984, c. 15, s. 64; 1986, c. 15, s. 55; 1986, c. 19, s. 47; 1989, c. 5, s. 57; 1994, c. 22, s. 128; 1997, c. 3, s. 71; 1997, c. 85, s. 330; 2000, c. 5, s. 71; 2004, c. 8, s. 52; 2009, c. 5, s. 92.