Can an individual can claim the first-time home buyers’ tax credit (“FTHBTC") if the individual owned a home outside Canada and occupied it during the four-year period referred to in s. (a)(ii) of the definition of “qualifying home” in s. 118. 05(1)? CRA responded:
[A]n individual owned a home that he inhabited during the four-year period referred to in subparagraph (a)(ii) … if he owned the home he inhabited during that period as his principal place of residence. …
[A]n individual does not meet the condition set out in subparagraph (a)(ii) … if the individual owned a home, located in Canada or outside Canada, that he inhabited as his principal place of residence in the four-year period referred to in subparagraph (a)(ii) … .
CRA quoted Income Tax Technical News No. 31R2 as to the meaning of “principal place of residence”:
An individual's “principal place of residence” is the place where the individual regularly, normally or customarily lives. In our view, the place where the individual normally sleeps is a significant factor in making this determination. Other significant factors include the location of the individual's belongings, where the individual receives his or her mail, and where the individual's immediate family, including the individual's spouse or common-law partner and children, reside.