![]() ![]() The determination as to where a person ordinarily resides at a particular time is ultimately a question of fact which can only be determined upon an examination of all relevant facts in the situation. It provides, in part, that the relocation must occur to enable the taxpayer to be employed at a new work location in Canada, both the residence at which the taxpayer ordinarily resided before the relocation and the residence at which the taxpayer ordinarily resided after the relocation must be in Canada, and the new residence must be at least 40 kilometres closer to the new work location than the old residence was. The term "eligible relocation" is defined in subsection 248(1) of the Act. Subsection 62(1) of the Act provides that, subject to certain conditions and limits, a taxpayer may deduct moving expenses paid in respect of an eligible relocation. We can, however, provide the following general comments. Where the particular transaction is completed, the inquiry should be addressed to the relevant Tax Services Office. Written confirmation of the tax implications inherent in particular transactions are given by this Directorate only where the transactions are proposed and are the subject matter of an advance ruling request submitted in the manner set out in Information Circular IC-70-6R5 dated May 17, 2002. The situation that is described in your letter appears to involve completed transactions involving specific taxpayers. You enquire whether the moving expenses incurred in XXXXXXXXXX and those that will be incurred on the eventual sale of the XXXXXXXXXX property would be deductible under section 62 of the Act. Upon moving to XXXXXXXXXX, your spouse is hoping to retire from work and does not anticipate commencing new employment. At that time, you will sell your property in XXXXXXXXXX and transport any remaining furniture and belongings to XXXXXXXXXX. Your spouse is planning on joining you in XXXXXXXXXX in a two to three year period. Your spouse was not able to immediately join you in XXXXXXXXXX due to current employment commitments in XXXXXXXXXX. At that time, you established a new residence in XXXXXXXXXX taking with you certain furniture and belongings. In XXXXXXXXXX you started a new permanent job in XXXXXXXXXX. ![]() You have indicated that you and your family lived in XXXXXXXXXX. We are writing in reply to your email of April 29, 2003, wherein you requested our comments in respect of the deductibility of moving expenses under section 62 of the Income Tax Act (the "Act"). REASONS: Question of fact, general comments provided. PRINCIPAL ISSUES: Whether certain moving expenses would be deductible under subsection 62(1)? In particular costs associated with selling the old residence two to three years after acquiring the new residence. Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC. Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CCRA. External Technical Interpretation Inquiries
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |