The taxpayer acquired a residence that included a small unit in the basement with an independent exit, kitchenette, washer/dryer entrance and separate municipal address, which initially was rented to a third party, but then was rented to the son of the taxpayer’s spouse (who under s. 252 was deemed to be the taxpayer’s child). No CCA was claimed. Before finding that this unit was a separate housing unit, so that the taxpayer had to choose which of the two units would be designated as the taxpayer’s principal residence, CRA stated:
[T]he fact that there are two different municipal addresses may lead us to conclude that there are two housing units. Other elements may also come into play, such as the existence of independent entrances, separate heating systems, separate hot water tanks and a tax account with several municipal addresses. The legal nature of the property is also a factor ... . In this regard ... there are certain municipal by-laws ... that allow a residence to retain the character of a single-family dwelling while providing a housing unit for a family member.