| December 21, 1990 | |
| CALGARY DISTRICT OFFICE | HEAD OFFICE |
| Rulings Directorate | |
| Attention: R.G. Burke | R.B. Day |
| Chief of Verifications | (613) 957-2136 |
| and Collections | |
| 902923 |
SUBJECT: 19(1) (the "taxpayer") Disposition of Principal Residence
As discussed with you, we are forwarding, for your consideration and reply, a request for an advance income tax ruling submitted on the taxpayer's behalf by 19(1)
As indicated in the attached reply to 19(1) the requested ruling cannot be given since the transaction has been completed. We offer the following comments which may be of assistance to you in replying to 19(1)
Comments
It appears the taxpayer's representative is relying on the decision in Yates v MNR (83 DTC 5158 and 86 DTC 6296) to claim that the disposition of the 24(1) would be eligible for the capital gains exemption for principal residence.
The decision in the Yates case was based on a finding of fact peculiar to that decision. In order for this decision to be applicable to other individuals, the facts in that case should be identical.
The principle that evolved from the Yates decision was that where a conveyance of residential property takes place in areas in which minimum lot sizes are imposed by municipal bylaws or provincial legislation in force at the time the property is acquired, the minimum residential parcel is considered to be the minimum amount that would be necessary for the use and enjoyment of the residence throughout the period that the property is continuously owned.
24(1)
Should you require further information or explanations in this regard, please contact us.
B.W. Dath for DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch