In the 1st situation, partnership between two spouses acquired a farm including a residence after January 27, 2009. Would either spouse be able to claim the HBTC or share it between them?
In the 2nd situation, a partnership between two spouses and their adult son and which owned a residence which was exclusively occupied by the two spouses, build a second residence after January 27, 2009 which was exclusively occupied by their son as his first residence. Can he claim the HBTC?
CRA responded:
[W]e accept, under an administrative position applicable for purposes of the HBTC (similar to those taken for purposes of calculating the gain on the disposition of a principal residence and the Home Renovation Tax Credit), that a member of a partnership may be able to claim the HBTC in certain situations even though the member is not the legal purchaser of the home.
By virtue of this administrative position, a partner could be considered the acquiror of the home for purposes of the HBTC and thus claim the HBTC if the member of the partnership is an individual, the home qualifies as a principal residence as defined in section 54 to the individual, and all of the conditions for the HBTC are otherwise satisfied as if the partner had personally acquired the home. ….
[This] position could apply in the two hypothetical situations … .