principally

26 July 2010 External T.I. 2010-0364721E5 F - Revenus de bien et d'entreprise -- summary under Subsection 1100(14)

After concluding that “the operator of a bed and breakfast, who has a personal residence in which bed and breakfast rooms are rented out on a short-term basis, is generally considered to be carrying on a business” rather than having a source of property income, CRA stated:

By services, 28 December, 2019

Gestions Calce Ltée v. Agence du revenu du Québec, 2019 QCCQ 7377 -- summary under Subsection 13(4)

One of the exceptions from the rule that a rental property cannot qualify as a “former business property” for purposes of the replacement property rules in ITA ss. 13(4) and 44 references the situation of a “property … leased by the taxpayer to a person related to the taxpayer and used by that related person principally for any other purpose.” The property in question had been rented by the taxpayer to third parties and to a related person (“CR”) for use in CR’s business of reselling used buses.

11 February 2014 External T.I. 2014-0517611E5 F - Actions d'une société agricole familiale -- summary under Paragraph (b)

In year 1 Father purchased Opco, in year 5 he transferred his shares equally to Child 1 who actively explanted the farming business of Opco along with Father (including after his death in Year 15), and to Child 2 who did not so participate. In Year 18 Child 2 transferred his or her shares to a holding company (Holdco), and in Year 20, wishes to transfer the shares of Holdco to a son. At all relevant times the assets of Opco were used in its farming business.

17 February 1992 T.I. 920014 (March 1993 Access Letter p. 86, ¶C248-127; Tax Window, No. 16, p. 18, ¶1753) -- summary under Small Business Corporation

If more than 50% of an asset is used in an active business, the asset will be considered to be used principally in an active business.

12 January 1993 T.I. 923151 (November 1993 Access Letter, p. 503, ¶C109-154) -- summary under Non-Qualifying Real Property

The use of the word "principally" requires that the property as a whole be considered rather than a percentage or a portion of the property. Provided that the principal or primary use test (as described in IT-195R4) is met, the entire property will not be a non-qualifying real property.

principally

principally

Term Tree