Online Seminar

Income Tax – Principal Residences

Nov 25, 2022

Online

DATE

NOV 25

2022

TIME

8:30 AM - 12:30 PM

WHO CAN ATTEND

All

PD HOURS

3.5 Hours

ETHICS HOURS

0 Hours

STATUS

Registration closed on

Nov 22, 2022

EVENT DESCRIPTION

NOTE: This course description has been revised and reflects updates for 2022. If you have any questions, please contact pdevents@cpaontario.ca

Many Canadians own a principal residence, but the tax implications of transactions involving principal residences are not always well known or fully understood. This seminar examines all aspects of principal residences from a federal tax perspective, including unusual situations and the unexpected issues or outcomes that can arise in such cases.

Accountants are often surprised to discover how complex the tax rules affecting principal residences are. Many of these complexities arise when a portion of the home is used to earn income (rented out or used in a business). Complications can also arise where the property is larger than half a hectare or when the owner moves out of the property for work or to live in a care home. Where an individual owns more than one home (such as a summer cottage), the decision to designate one property over another may result in a materially different tax outcome.

This seminar examines the requirements for a property to undergo classification as a principal residence as well as the concepts of ownership and bare trustees, the ordinarily inhabited requirement, and the placement of housing units on multiple or large properties. Other topics include income earned from a principal residence, the concept of incidental income, change-in-use rules, and partial dispositions or residences held through trusts.

Topics covered in this course include:

  • Principal residences and capital property, including the doctrine of secondary intention and implications for house flippers
  • The definition of a housing unit, including trailers and houseboats
  • Property owners, including bare trustees
  • Conditions that meet the ordinarily inhabited rule, including situations where taxpayers have moved into care facilities
  • The designation of a property as a principal residence and the mechanics of the principal residence formula
  • Properties used to earn income and the concept of incidental income
  • Housing units on multiple properties and properties in excess of one half hectare
  • Partial dispositions of a property, including prior subdivisions
  • The change-in-use rules, elections to avoid these rules, and implications of filing elections
  • Residences held through trusts and the impact of the October 2016 legislative amendments
  • The impact of separation and divorce on the principal residence exemption

By the end of this course, participants should be able to:

  • Apply the mechanics of the principal residence deduction (including the components of the formula and the year by year designation).
  • Apply the definition of the term “principal residence” including the terms like “housing unit” and “ordinarily inhabit.”
  • Identify the impact of the change in use rules on residences (including partial changes in use).
  • Understand the implications when only a portion of a property qualifies as a principal residence (including large acreages and properties used to earn income).
  • Interpret the rules when a residence is owned by a trust and the October 2016 amendments in this area.

Although applicable to many professional accountants, this session will particularly benefit individuals who own a principal residence and financial professionals who provide advice to homeowners.

Participants enrolled in this seminar must have knowledge of the Income Tax Act.

PRICING

$163.00 Personal Passport

$190.00 Organization Passport

$261.00 Member

$261.00 Student

$317.00 Public

Status: Registration closed on Nov 22, 2022

LOCATION

Online

SPEAKER(S) BIO

Nehal Shelat, CPA, CGA, CFP is a tax professional with over 13 years of experience in Canadian Income Tax. At present he is Director - Product Tax with RBC Insurance where he provides income tax expertise to business units. Prior to joining RBC, Nehal worked at London Life Insurance Company and was also was part of the tax team of KPMG, and Deloitte in their London office. Before joining these leading public accounting firms, Nehal also held various positions in industry for nine years and has gained experience in different service and manufacturing sectors.

SPECIAL INSTRUCTIONS

This course is a live webinar. You must attend the live course to receive verifiable CPD hours. We recommend you join five minutes prior to the scheduled starting time. To get the full experience of this interactive course, use a computer that has video and microphone capabilities.

Electronic material can be accessed one week prior to the course at https://pdlms.cpaontario.ca/ and should be downloaded in advance.

Registration, cancellation, withdrawal and all other CPA Ontario PD Seminar policies can be found here.