I-3 - Taxation Act

Section 274.0.1 Disposition versions

2021-06-02

274.0.1. In this Title, “principal residence” of an individual who is a personal trust, in this section referred to as a “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 trust, whether alone or jointly with another person, and the conditions set out in the second paragraph and one of the following conditions are met:

(a)  the housing unit was ordinarily inhabited in the calendar year ending in the year by a specified beneficiary of the trust for the year, by the spouse or former spouse of such a beneficiary or by a child of such a beneficiary; or

(b)  the trust 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 conditions referred to in the first paragraph are as follows:

(a)  the particular property was designated by the trust, in accordance with the fifth paragraph, as the trust’s principal residence for the year;

(b)  the trust has specified in the designation each individual, in this section and in section 275.1 referred to as a “specified beneficiary”, who, in the calendar year ending in the year,

i.  is beneficially interested in the trust, and

ii.  except where the trust is entitled to designate the particular property for the year solely by reason of subparagraph b of the first paragraph, ordinarily inhabited the housing unit or has a spouse, former spouse or child who ordinarily inhabited the housing unit;

(c)  no corporation, other than a registered charity, or partnership is beneficially interested in the trust at any time in the year; and

(c.1)  if the year begins after 31 December 2016, the trust is, in the year,

i.  a trust for which a day is to be determined under any of subparagraphs a, a.1 and a.4 of the first paragraph of section 653 by reference to the death or later death, as the case may be, that has not occurred before the beginning of the year, of an individual who is resident in Canada during the year, and a trust a specified beneficiary of which for the year is the individual,

ii.  a trust that is a qualified disability trust (within the meaning of the first paragraph of section 768.2) for the year and in respect of which an electing beneficiary (within the meaning of that paragraph) for the year is resident in Canada during the year, is a specified beneficiary of the trust for the year and is a spouse, former spouse or child of the settlor (having in this subparagraph c.1 the meaning assigned by the first paragraph of section 658) of the trust, or

iii.  a trust a specified beneficiary of which for the year is an individual who is resident in Canada during the year, who has not attained 18 years of age before the end of the year and a mother or father of whom is a settlor of the trust, and in respect of which either of the following conditions is met:

(1)  no mother or father of the individual is alive at the beginning of the year, or

(2)  the trust arose before the beginning of the year on and as a consequence of the death of a mother or father of the individual; and

(d)  no other property has been designated for the purposes of this section and sections 274, 275.1, 277 and 285 for the calendar year ending in the year by

i.  a specified beneficiary of the trust for the year,

ii.  a person who was throughout that calendar year the spouse of a beneficiary referred to in subparagraph i, other than a spouse who was throughout that calendar year living separate and apart from the beneficiary pursuant to a judicial separation or a written separation agreement,

iii.  a person who was the child of a beneficiary referred to in subparagraph i, other than a child who was during that calendar year a married person or a person 18 years of age or over, or

iv.  where a beneficiary referred to in subparagraph i was not during that calendar year a married person or a person 18 years of age or over, a person who was the beneficiary’s father or mother, or brother or sister, where that brother or sister was not during that calendar year a married person or a person 18 years of age or over.

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.1 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.1 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 a trust, under this section, for a particular taxation year even though the particular property was not the subject of a valid designation by the trust under paragraph c.1 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 trust disposed, in a taxation year that ended before 3 October 2016, of a property other than the particular property,

ii.  the trust 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 trust under paragraph c.1 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 trust 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 trust under paragraph c.1 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 trust under this section for the particular taxation year.

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

1994, c. 22, s. 129; 1995, c. 49, s. 236; 1996, c. 39, s. 273; 1997, c. 3, s. 71; 1997, c. 85, s. 330; 2000, c. 5, s. 72; 2009, c. 5, s. 93; 2009, c. 15, s. 69; 2021, c. 14, s. 39.

2009-06-04

274.0.1. In this Title, “principal residence” of an individual who is a personal trust, in this section referred to as a “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 trust, whether alone or jointly with another person, and the conditions set out in the second paragraph and one of the following conditions are met:

(a)  the housing unit was ordinarily inhabited in the calendar year ending in the year by a specified beneficiary of the trust for the year, by the spouse or former spouse of such a beneficiary or by a child of such a beneficiary; or

(b)  the trust 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 conditions referred to in the first paragraph are as follows:

(a)  the particular property was designated by the trust, in accordance with the third paragraph, as the trust’s principal residence for the year;

(b)  the trust has specified in the designation each individual, in this section and in section 275.1 referred to as a “specified beneficiary”, who, in the calendar year ending in the year,

i.  is beneficially interested in the trust, and

ii.  except where the trust is entitled to designate the particular property for the year solely by reason of subparagraph b of the first paragraph, ordinarily inhabited the housing unit or has a spouse, former spouse or child who ordinarily inhabited the housing unit;

(c)  no corporation, other than a registered charity, or partnership is beneficially interested in the trust at any time in the year; and

(d)  no other property has been designated for the purposes of this section and sections 274, 275.1, 277 and 285 for the calendar year ending in the year by

i.  a specified beneficiary of the trust for the year,

ii.  a person who was throughout that calendar year the spouse of a beneficiary referred to in subparagraph i, other than a spouse who was throughout that calendar year living separate and apart from the beneficiary pursuant to a judicial separation or a written separation agreement,

iii.  a person who was the child of a beneficiary referred to in subparagraph i, other than a child who was during that calendar year a married person or a person 18 years of age or over, or

iv.  where a beneficiary referred to in subparagraph i was not during that calendar year a married person or a person 18 years of age or over, a person who was the beneficiary’s father or mother, or brother or sister, where that brother or sister was not during that calendar year a married person or a person 18 years of age or over.

The designation referred to in subparagraph a of the second paragraph shall be made in the fiscal return the trust is required to file under section 1000 for its taxation year in which it disposed of the particular property or granted an option to purchase the particular property.

1994, c. 22, s. 129; 1995, c. 49, s. 236; 1996, c. 39, s. 273; 1997, c. 3, s. 71; 1997, c. 85, s. 330; 2000, c. 5, s. 72; 2009, c. 5, s. 93; 2009, c. 15, s. 69.

2006-03-01

274.0.1. In this Title, “principal residence” of an individual who is a personal trust, in this section referred to as a “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 trust, whether alone or jointly with another person, and the conditions set out in the second paragraph and one of the following conditions are met:

(a)  the housing unit was ordinarily inhabited in the calendar year ending in the year by a specified beneficiary of the trust for the year, by the spouse or former spouse of such a beneficiary or by a child of such a beneficiary; or

(b)  the trust 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 conditions referred to in the first paragraph are as follows:

(a)  the particular property was designated by the trust, in accordance with the third paragraph, as the trust’s principal residence for the year;

(b)  the trust has specified in the designation each individual, in this section and in section 275.1 referred to as a “specified beneficiary”, who, in the calendar year ending in the year,

i.  is beneficially interested in the trust, and

ii.  except where the trust is entitled to designate the particular property for the year solely by reason of subparagraph b of the first paragraph, ordinarily inhabited the housing unit or has a spouse, former spouse or child who ordinarily inhabited the housing unit;

(c)  no corporation, other than a registered charity, or partnership is beneficially interested in the trust at any time in the year; and

(d)  no other property has been designated for the purposes of this section and sections 274, 275.1, 277 and 285 for the calendar year ending in the year by

i.  a specified beneficiary of the trust for the year,

ii.  a person who was throughout that calendar year the spouse of a beneficiary referred to in subparagraph i, other than a spouse who was throughout that calendar year living apart and separated from the beneficiary pursuant to a judicial separation or a written separation agreement,

iii.  a person who was the child of a beneficiary referred to in subparagraph i, other than a child who was during that calendar year a married person or a person 18 years of age or over, or

iv.  where a beneficiary referred to in subparagraph i was not during that calendar year a married person or a person 18 years of age or over, a person who was the beneficiary’s father or mother, or brother or sister, where that brother or sister was not during that calendar year a married person or a person 18 years of age or over.

The designation referred to in subparagraph a of the second paragraph shall be made in the fiscal return the trust is required to file under section 1000 for its taxation year in which it disposed of the particular property or granted an option to purchase the particular property.

1994, c. 22, s. 129; 1995, c. 49, s. 236; 1996, c. 39, s. 273; 1997, c. 3, s. 71; 1997, c. 85, s. 330; 2000, c. 5, s. 72; 2009, c. 5, s. 93.