| Canada Mortgage and Housing Corporation | |
| National Office | |
| 682 Montréal Road | 913416 |
| Ottawa, Ontario | Bill Guglich |
| K1A 0P7 | (613) 957-2102 |
Attention: Eva Berringer
January 13, 1992
Dear Sirs:
Re: Home Adaptions for Seniors' Independence Program (the "HASI")
This is in reply to your letter of December 4, 1991 wherein you request our views as to whether grants paid under the HASI would be required to be included in the recipient's income, for income tax purposes.
The grants would in our view be required to be included in computing the recipient's income for the year as a social assistance payment, pursuant to paragraph 56(1)(u) of the Income Tax Act (the "Act"). However, in computing the recipients taxable income for the year the amount of the grants included in income as social assistance payments would be deductible pursuant to subparagraph 110(1)(f)(iii) of the Act.
The result would be neutral as far as the taxable income for the year is concerned. There may, however, be a tax consequence to the recipient, in that certain tax credits (e.g. the non-refundable credit in respect of medical expenses) ,may be reduced or, depending on the income of the recipient of the grant, family allowance and old-age security payments may be clawed back.
We trust our comments will be of assistance to you.
Yours truly,
E. Wheelerfor DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch