,canada ,cu/oms #a & ,rev5ue ,ag5cy ,9t]pret,n ,bullet9 ,numb]3 ,,it-#cjd;,r#b ,date3 ,june #b1 #bjjj ,subject3 ,9come ,tax ,act--,3dom9iums ,ref];e3 ,p>agraphs #bj7#a77a71 #adi7#a77l7 & #aej7#a77a7 (! ,9come ,tax ,act 7al p>agraph #bj7#a77aa7 (! ,act1 ,class #a ( ,s*$ule ,,ii (! ,9come ,tax ,regul,ns & subsec;ns #aajj7#aa71 #aajj7#ad71 #aaja7#a;ac7 & #aajj7#a;ae7 (! ,regul,ns7 ,at ! ,canada ,cu/oms & ,rev5ue ,ag5cy 7,,ccra71 we issue 9come tax 9t]pret,n bullet9s 7,,it's7 9 ord] 6provide te*nical 9t]pret,ns & posi;ns reg>d+ c]ta9 provi.ns 3ta9$ 9 9come tax law4 ,due 6_! te*nical nature1 ,,it's >e us$ prim>ily 0\r /aff1 tax speciali/s1 & o!r 9dividuals :o h an 9t]e/ 9 tax matt]s4 ,= ^? r1d]s :o pref] a less #a  ,,it-#cjd;,r#b a#a te*nical explan,n (! law1 we (f] o!r public,ns1 s* z tax guides & pamphlets4 ,:ile ! -;ts 9 a "picul> p>agraph 9 an ,,it may relate 6provi.ns (! law 9 =ce at ! "t !y 7 made1 s* -;ts >e n a sub/itute =! law4 ,! r1d] %d1 "!=e1 3sid] s* -;ts 9 li tax,n ye> 2+ 3sid]$1 tak+ 96a3.t ! e6ect ( any relevant am5d;ts 6^? provi.ns or relevant c\rt deci.ns o3urr+ af ! date on : ! -;ts 7 made4 ,subject 6! abv1 an 9t]pret,n or posi;n 3ta9$ 9 an ,,it g5],y applies z (! date on : x 0 publiciz$1 un.s o!rwise specifi$4 ,if "! is a subsequ5t *ange 9 t 9t]pret,n or posi;n &! *ange is b5eficial 6taxpay]s1 x is usu,y e6ective = future assess;ts & reassess;ts4 ,if1 on ! o!r h&1 ! *ange is n fav\ra# 6taxpay]s1 x w norm,y 2 e6ective =! curr5t & subsequ5t tax,n ye>s or = transac;ns 5t]$ 96af ! date on : ! *ange is publiciz$4 #b  ,,it-#cjd;,r#b b#a ,if y h any -;ts reg>d+ matt]s 4cuss$ 9 an ,,it1 pl1se s5d !m to3 ,director1 ,busi;s & ,public,ns ,divi.n ,9come ,tax ,rul+s ,directorate ,policy & ,legisl,n ,bran* ,canada ,cu/oms & ,rev5ue ,ag5cy ,ottawa ,,on ,k#a;,a #j;,l#e ,an (ficial v].n ( ? ,,it w 2 availa# on \r ,9t]net site at3 _+www.ccra-adrc.gc.ca_: ,3t5ts ,applic,n ,summ>y ,4cus.n & ,9t]pret,n ,legal ,basis (! ,3dom9ium 7p>agraphs #a-b7 ,3dom9ium ,corpor,n 7p>agraphs #c-d7 ,3dom9ium ,unit ,us$ 6,e>n ,busi;s or ,r5tal ,9come #c  ,,it-#cjd;,r#b c#a ,g5]al 7p>agraph #e7 ,capital ,co/ ,all[.e 7p>agraph #f7 ,,cca ,re/ric;n & ,sep>ate ,class ,rule 7p>agraph #g7 ,repairs & ,r5ov,ns 7p>agraph #h7 ,quebec 7p>agraph #i7 ,explan,n ( ,*anges ,applic,n ,? bullet9 c.els & replaces ,9t]pret,n ,bullet9 ,,it-#cjd;,r1 dat$ ,may #ac1 #aiia1 =m]ly call$ ,capital ,co/ ,all[.e --,3dom9iums4 ,summ>y ,? bullet9 provides a brief ov]view (! 3dom9ium sy/em ( [n]%ip 9 ,canada4 ,x expla9s1 9 g5]al t]ms1 ! purpose & func;n (a 3dom9ium corpor,n cr1t$ "u prov9cial or t]ritorial legisl,n4 ,al1 x 9dicates ! type ( returns t a 3dom9ium #d  ,,it-#cjd;,r#b d#a corpor,n has 6file = f$]al 9come tax purposes4 ,! bullet9 al -;ts on ! classific,n1 = capital co/ all[.e & o!r purposes1 (! co/s 9curr$ 9 ! acquisi;n (a 3dom9ium unit4 ,x -;ts on ! tax tr1t;t (! taxpay]'s %>e (! co/s 9curr$ 9 ma9ta9+ ! -mon prop]ty (a 3dom9ium develop;t4 ,^! -;ts >e p]t95t 9 calculat+ ! 9come or loss f ! use (! 3dom9ium 9 ! c\rse ( e>n+ 9come f a busi;s or prop]ty1 b d n apply 6an 9dividual :o [ns & o3upies ! unit z a p]sonal or vac,n resid;e4 --------------------------------------#b ,4cus.n & ,9t]pret,n ,legal ,basis (! ,3dom9ium 7p>agraph #a-b7 #a4 ,ea* ( ,canada's t5 prov9ces & ?ree t]ritories h /atutes : recognize ! 3dom9ium sy/em ( [n]%ip1 t is1 ! sep>ate [n]%ip (a 3dom9ium unit -b9$ ) %>$ [n]%ip ( -mon prop]ty )9 ! #e  ,,it-#cjd;,r#b a#b 3dom9ium develop;t4 ,9 ? bullet91 we ref] 6t]ms us$ 9 ! ,3dom9ium ,acts ( ,ont>io & ,briti% ,columbia1 : >e repres5tative (! t]m9ology likely 6be 5c.t]$ 9 mo/ o!r prov9cial & t]ritorial legisl,n4 7,h["e1 ref] 6p>agraph #i =! situ,n 9 ! ,prov9ce ( ,quebec47 #b4 ,a 3dom9ium -b9es two 4t9ct types ( prop]ty [n]%ip4 ,a unit [n] norm,y [ns ! unit 9 fee simple & %>es [n]%ip (! -mon >1s (! 3dom9ium prop]ty ) all ! o!r unit [n]s4 ,a 3dom9ium is leg,y cr1t$ 0! a3ept.e & regi/r,n (a 8decl>,n0 & 8descrip;n0 or a 8/rata plan0 9 ! appropriate l& regi/ry or l& titles (fice4 ,g5],y1 ! legal 3sequ;es ( s* regi/r,n >e z foll[s3 7a7 ,a 3dom9ium corpor,n1 z 4cuss$ 9 p>agraph #c1 -es 96exi/;e & xs memb]s 2come ! [n]s (! 8units0 or 8/rata lots0 s cr1t$ z a result (! 9corpor,n 7collectively ref]r$ 6z units 9 ? bullet974 #f  ,,it-#cjd;,r#b b#b 7b7 ,units may 2 d1lt )& reg>d$ z r1l prop]ty & >e held 9 fee simple 0! [n]4 ,a unit is ei ! sep>ate unit /ructure or t por;n (a multi-unit /ructure : 3si/s ( all ! space 2t ! "pi;ns1 floors & ceil+s sep>at+ x f o!r units & f ! -mon ele;ts or -mon prop]ty4 7c7 ,ea* s* [n] %>es [n]%ip (! 8-mon ele;ts0 or 8-mon prop]ty10 : is all t "p (! l& & build+s n 9clud$ )9 any units4 ,s* -mon ele;ts or prop]ty 9clude p>k+ lots1 l&scap$ >1s1 laundry rooms1 hallways1 elevators1 & /airwells4 ,! propor;nal 9t]e/ 9 ! -mon ele;ts or prop]ty is e/abli%$ 9 ! docu;ts fil$ 9 ! l& regi/ry or l& titles (fice4 ,al? ! t]m 3dom9ium is usu,y associat$ )a resid5tial develop;t1 a 3dom9ium may al 2 a -m]cial1 9du/rial1 resort or mix$-use develop;t4 ,! purpose & #g  ,,it-#cjd;,r#b c#b type ( any 3dom9ium develop;t w 2 set \ 9 xs decl>,n1 by-laws & rules4 ,3dom9ium ,corpor,n 7p>agraphs #c-d7 #c4 ,a 3dom9ium corpor,n cr1t$ "u ,canadian prov9cial or t]ritorial legisl,n is a corpor,n )\t %>e capital ^: memb]s >e ! [n]s4 ,! objects ( s* a corpor,n 9clude1 am;g o!r ?+s1 ! manage;t (! r1l prop]ty & any o!r assets (! corpor,n4 ,! corpor,n al has a duty 63trol1 manage & adm9i/] ! -mon ele;ts & assets (! corpor,n1 & 65sure t ! unit [n]s -ply )! corpor,n's regi/]$ 3dom9ium docu;ts1 xs by-laws &! provi.ns (! relevant 3dom9ium legisl,n4 ,provid$ t !y >e n 3tr>y 6relevant 3dom9ium legisl,n or ! regi/]$ 3dom9ium docu;ts1 ! bo>d (! corpor,n may pass by-laws 6gov]n1 am;g o!r ?+s3 #h  ,,it-#cjd;,r#b d#b --! manage;t (! prop]ty2 --! ma9t5.e (! -mon ele;ts2 --! use & manage;t (! assets (! corpor,n2 & --! assess;t & collec;n ( 3dom9ium fees & 3tribu;ns t[>ds ! -mon exp5ses4 ,g5],y1 ! exp5ditures ( s* a corpor,n >e met 0xs memb]s on a propor;nate basis4 ,any excess (! memb]s' 3dom9ium fees & 3tribu;ns ov] ! corpor,n's exp5ditures =! ye> is n 3sid]$ 6be 9come (! corpor,n4 ,9come f o!r s\rces or activities1 s* z 9t]e/ e>n$ on ! corpor,n's op]at+ or res]ve funds or r5tal & o!r 9cid5tal 9come is 9come (! corpor,n 7h["e1 see p>agraph #d = -;ts on ! /atus (a resid5tial 3dom9ium corpor,n z a non-pr(it corpor,n74 ,if a 3dom9ium corpor,n c>ries on a busi;s1 any pr(its f t busi;s m/ 2 9clud$ 9 xs 9come & x w n 2 3sid]$ a non-pr(it corpor,n4 #i  ,,it-#cjd;,r#b e#b #d4 ,p>agraph #aej7#a77a7 requires all corpor,ns1 9clud+ 3dom9ium corpor,ns1 6file an 9come tax return ea* ye>1 ev5 if !y >e exempt f pay+ tax "u ,"p ;,i4 ,a resid5tial 3dom9ium corpor,n t qualifies z a non-pr(it organiz,n "u p>agraph #adi7#a77l7 is exempt f ,"p ;,i tax on xs taxa# 9come b is requir$ 6file ,=m ,t#ajdd1 ,non-,pr(it ,organiz,n 7,,npo7 ,9=m,n ,return1 ) xs ,t#b tax return4 ,al? x is a "q ( fact :e!r a "picul> 3dom9ium corpor,n qualifies = an exemp;n "u p>agraph #adi7#a77l71 mo/ resid5tial 3dom9ium corpor,ns qualify z non-pr(it organiz,ns )9 ! m1n+ ( ? p>agraph4 ,= 9=m,n on ! 3di;ns nec 6qualify z a tax-exempt non-pr(it organiz,n1 see ! curr5t v].n ( ,,it-#dif1 ,non-,pr(it ,organiz,ns4 #aj  ,3dom9ium ,unit ,us$ 6,e>n f#b ,busi;s or ,r5tal ,9come ,g5]al 7p>agraph #e7 #e4 ,! foll[+ -;ts apply :5 a 3dom9ium unit is us$ 9 a busi;s or is r5t$ 6o!r p]sons1 b d n apply :5 x is us$ prim>ily z a p]sonal resid;e 7ei z a pr9cipal resid;e or a vac,n resid;e7 (! [n]4 ,:5 a 3dom9ium is r5t$ 6o!rs dur+ ! "t x is n us$ p]son,y 0! [n]1 ! -;ts : foll[ >e only applica# if ! [n] has a r1sona# expect,n ( pr(it f ! r5tal (! 3dom9ium4 --------------------------------------#c ,capital ,co/ ,all[.e 7p>agraph #f7 #f4 ,= capital co/ all[.e 7,,cca7 purposes1 :5 a unit 9cludes l&1 ! usual alloc,n ( co/ 2t l& & build+ m/ 2 made 7see ! curr5t v].n ( ,,it-#bbj1 ,capital ,co/ ,all[.e--,proce$s ( ,4posi;n ( ,deprecia# ,prop]ty74 #aa  ,,it-#cjd;,r#b a#c ,? alloc,n is nec1 = example1 ": a gr.d floor a"p;t unit 9cludes an \tdoor patio1 or ": a deta*$ s+le- family 3dom9ium unit 9cludes a front or back y>d : is n "p (! -mon ele;ts4 ,z 9dicat$ 9 p>agraph #b7c71 :5 a unit is pur*as$ ! pur*as] al acquires a propor;nate 9t]e/ 9 ! -mon ele;ts p]ta9+ 6! unit4 ,an alloc,n 2t l&1 build+ & o!r deprecia# prop]ty 7s* z a p>k+ lot7 is al requir$ 9 respect (! co/s attributa# 6! -mon ele;ts4 ,z a result1 ! capital co/ (a unit 9cludes ! co/ ( acquisi;n & capital exp5ditures relat$ 6! build+ por;n (! unit z well z any co/s attributa# 6! unit hold]'s propor;nate 9t]e/ 9 ! -mon ele;ts ( any deprecia# prop]ty held 0! corpor,n4 ,= units acquir$ af #aihg1 ! capital co/ (a 3dom9ium unit 7build+ por;n7 is g5],y 9clud$ 9 ,class #a ( ,s*$ule ,,ii 6! ,regul,ns = ,,cca purposes4 ,h["e1 if ! unit 0 acquir$ 2f #aihh1 x may h #ab  ,,it-#cjd;,r#b b#c qualifi$ = 9clu.n 9 ,class #c1 ,class #f1 ,class #ca or ,class #cb4 ,= m details see ! curr5t v].n ( ,,it-#gi1 ,capital ,co/ ,all[.e--,build+s or ,o!r ,/ructures4 ,,cca ,re/ric;n & ,sep>ate ,class ,rule 7p>agraph #g7 #g4 ,subsec;n #aajj7#aa7 (! ,regul,ns re/ricts ! am.t ( ,,cca t may 2 claim$ on r5tal prop]ties4 ,a 3dom9ium unit : meets ! def9i;n ( 8r5tal prop]ty0 9 subsec;n #aajj7#ad7 is subject 6? re/ric;n )! result t a unit [n] _c cr1te or 9cr1se a net loss f ! r5tal ( prop]ty4 ,9 a4i;n1 subsec;n #aaja7#a;ac7 (! ,regul,ns requires ! e/abli%;t (a sep>ate class = ea* r5tal prop]ty )a capital co/ ( at l1/ 4#ej1jjj4 ,h["e1 if ! taxpay] [ns two or m units or lots 9 ! same build+ ) an a7regate capital co/ ( at l1/ 4#ej1jjj1 all s* units or lots 9 #ac  ,,it-#cjd;,r#b c#c ! same build+ >e 3sid]$ 6be a s+le r5tal prop]ty 9 a sep>ate prescrib$ class4 ,repairs & ,r5ov,ns 7p>agraph #h7 #h4 ,usu,y1 a "p (! 3dom9ium fee pd 0! unit [n] goes 96! 3dom9ium corpor,n's res]ve fund = ma9t5.e1 repairs1 improve;ts or a4i;ns 6! -mon ele;ts4 ,fur!rmore1 a unit [n] may 2 *>g$ an extraord9>y levy 0! 3dom9ium corpor,n =a por;n (! co/s relat+ 6repairs or r5ov,ns requir$ 6be made 6! -mon ele;ts4 ,9 ei case1 no deduc;n or capitaliz,n (! exp5se is p]mitt$ until ! am.t is laid \ 6e>n 9come 0! 3dom9ium corpor,n4 ,? is 2c prepd exp5ses1 or exp5ses : >e pd 2f !y >e actu,y 9curr$1 >e n deducti# z expla9$ 9 ! curr5t v].n ( ,,it-#dag1 ,prepd ,exp5ses & ,def]r$ ,*>ges4 ,:e!r ! unit [n] deducts ! am.t z a #ad  ,,it-#cjd;,r#b d#c curr5t exp5se or capitalizes x dep5ds on ! nature (! "w d"o4 ,ref] 6! curr5t v].n ( ,,it-#abh1 ,capital ,co/ ,all[.e--,deprecia# ,prop]ty = fur!r details on h[ s* co/s >e classifi$4 ,c]ta9 capital exp5ditures 9curr$ = 4abil;y-relat$ devices or modific,ns 6a build+ 6a3ommodate 4a#d 9dividuals >e deducti# "u p>agraph #bj7#a77qq7 or #bj7#a77rr7 9 ! ye> ! exp5se is pd4 ,! devices & modific,ns : qualify "u ^! provi.ns >e li/$ 9 sec;ns #hhjj & #hhja (! ,regul,ns4 ,capital exp5ditures 9curr$ 9 respect (! l& d n =m "p (! capital co/ (! build+ por;n (! unit & >e n deducti# 9 -put+ 9come except z specific,y provid$ = 9 ! ,act4 ,! co/ ( l&scap+1 = example1 may 2 deducti# "u p>agraph #bj7#a77aa74 ,quebec 7p>agraph #i7 #i4 ,9 ! prov9ce ( ,quebec1 ! 3dom9ium sy/em ( [n]%ip is recogniz$ 9 ! #ae  ,,it-#cjd;,r#b e#c ,civil ,code ( ,quebec4 ,x 3ta9s >ticles d1l+ )! 8divid$ co-[n]%ip ( immova#s0 : >e analog\s 6! 3dom9ium legisl,n 9 e6ect 9 ! o!r prov9ces & t]ritories4 ,^! provi.ns provide =! direct [n]%ip ( 3dom9ium units 7call$ 8fractions074 ,ea* frac;n 9cludes a por;n (! l& & build+ : is ! prop]ty (a specific co-[n] & is res]v$ =! sole use ( t co-[n] 7call$ 8les parties privatives07 & an undivid$ 9t]e/ 9 ! -mon >1s (! l& & build+ 7call$ 8les parties communes074 ,:5 a decl>,n ( co-[n]%ip is publi%$1 a syndicate is e/abli%$ z a legal p]son responsi# = protect+ ! "rs (! co-[n]s & manag+ & ma9ta9+ ! -mon por;ns (! 3dom9ium4 ,= 9come tax purposes1 s* a syndicate is 3sid]$ 6be a corpor,n4 ,all[+ = ^! di6];es1 ! -;ts 9 ? bullet9 apply equ,y 63dom9iums e/abli%$ "u ! ,civil ,code ( ,quebec4 #af  ,explan,n ( ,*anges #d ,9troduc;n ,! purpose (! ,explan,n ( ,*anges is 6give ! r1sons =! revi.ns 6an 9t]pret,n bullet94 ,x \tl9es ! revi.ns we h made z a result ( *anges 6! law1 z well z *anges reflect+ new or revis$ 9t]pret,ns4 ,r1son =! ,revi.n ,? revi.n 0 "utak5 z a result (a *ange 9 ! ,canada ,cu/oms & ,rev5ue ,ag5cy's posi;n ) respect 63dom9ium corpor,ns z ann\nc$ 9 ! la/ >ticle ( ,9come ,tax ,te*nical ,news ,no4 #d1 dat$ ,febru>y #bj1 #aiie4 ,! bullet9 expla9s1 9 g5]al t]ms1 ! purpose & func;n (a 3dom9ium corpor,n 7a syndicate 9 ,quebec7 & describes ! types ( returns : m/ 2 fil$ 0! 3dom9ium corpor,n = 9come tax purposes4 ,x al 4cusses ! unit [n]'s deduc;n ( c]ta9 exp5ses1 9clud+ #ag  ,,it-#cjd;,r#b a#d ,,cca1 applica# :5 a 3dom9ium unit is us$ 6e>n 9come f a busi;s or f ! r5tal (! unit4 ,! bullet9 0 al modifi$ 6reflect *anges 6! ,9come ,tax ,act result+ f ,s4,c4 #aiid1 c4 #g ,sch4 ,,viii 7#aiic1 c4 #bd7 & 6! ,,cca classes = build+s4 ,-;ts 3c]n+ multiple unit resid5tial build+s 7,,murb's7 h be5 delet$ 2c ! tax 9c5tives applica# 6s* build+s >e no l;g] availa#4 ,legislative & ,o!r ,*anges ,! ,summ>y has be5 exp&$ &! ref];e 6,9=m,n ,circul> #gi-g1 ,! ,3dom9ium ,corpor,n & ,xs ,memb]s1 0 delet$ 2c ? circul> 0 c.ell$ 7see ,9come ,tax ,te*nical ,news ,no4 #d1 dat$ ,febru>y #bj1 #aiie74 ,p>agraph #b 0 revis$ 69dicate t 3dom9iums may 2 cr1t$ = o!r ?an resid5tial purposes & li/s ! o!r types ( 3dom9ium develop;ts4 #ah  ,,it-#cjd;,r#b b#d ,new p>agraph #c 0 a4$ 6expla9 9 g5]al t]ms ! purpose & func;n (a 3dom9ium corpor,n4 ,x al provides examples (! types ( 9come a 3dom9ium corpor,n may e>n4 ,new p>agraph #d expla9s t all 3dom9ium corpor,ns1 :e!r or n !y >e taxa#1 >e requir$ 6file an 9come tax return ea* ye>4 ,x al 9dicates t a resid5tial 3dom9ium corpor,n c qualify z a tax-exempt non-pr(it organiz,n &1 if s1 x may h 6file a non-pr(it 9=m,n return z well z an 9come tax return4 ,new p>agraph #f br+s =w>d ! 9=m,n 3ta9$ 9 =m] p>agraph #c & p>agraph #d4 ,x has be5 exp&$ 69dicate t = capital co/ all[.e purposes ! build+ por;n (a 3dom9ium unit t 0 pur*as$ af #aihg is 9clud$ 9 ,class #a4 ,a ref];e 6! curr5t v].n ( ,,it-#gi1 ,capital ,co/ ,all[.e-- ,build+s or ,o!r ,/ructures1 0 a4$ 2c x expla9s ,class #a1 ,class #c & ,class #f ( ,s*$ule ,,ii (! ,9come ,tax ,regul,ns 9 m detail4 #ai  ,,it-#cjd;,r#b c#d ,p>agraph #g 0 revis$ 6add a ref];e 6subsec;ns #aajj7#aa7 & #aajj7#ad7 (! ,regul,ns1 : prev5t ! cre,n or 9cr1se (a r5tal loss 0claim+ ,,cca on a 3dom9ium unit t is a r5tal prop]ty4 ,p>agraph #h 0 revis$ 6reflect ! a4i;n ( subsec;ns #bj7#a77qq7 & #bj7#a77rr7 z a result ( ,s4,c4 #aiid1 c4 #g ,sch ,,viii 7#aiic1 c4 #bd74 ,p>agraph #i 0 revis$ 6reflect c]ta9 *anges 3c]n+ 3dom9ium develop;ts 9 ,quebec t 7 9corporat$ 96! ,civil ,code ( ,quebec1 : came 96e6ect on ,janu>y #a1 #aiid4 ,=m] p>agraph #e 9dicat$ t two or m 3dom9ium units [n$ 0a taxpay] 9 ! same build+ >e 3sid]$ 6h a s+le capital co/ =! purpose (! a4i;n 6,class #f1 #ca or #cb ( ,s*$ule ,,ii (! ,regul,ns4 ,! -;ts 9 =m] p>agraph #e >e no l;g] applica# 2c a 3dom9ium unit acquir$ af #aihg falls )9 ,class #a or #c4 ,unlike ! descrip;n ( ,classes #f1 #ca & #cb1 ! descrip;n ( #bj  ,,it-#cjd;,r#b d#d ,class #a & ,class #c 9cludes prop]ty : is an 9t]e/ 9 a build+4 ,=m] p>agraph #f 0 elim9at$ 2c ! tax 9c5tives relat+ 6,,murb's >e no l;g] availa#4 ,t is1 af #aiic1 ,,cca on a ,class #ca or #cb prop]ty _c cr1te or 9cr1se a r5tal loss4 ,"?\t ! bullet91 we h made m9or *anges = cl>ific,n or r1dabil;y purposes4 #ba