Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed
to be correct at the time of issue, may not represent the
current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis,
peut ne pas représenter la position actuelle du ministère.
Principal Issues:
does "mobile home" meet def of house in National housing
act, for purposes of being qualified as a mortgage
investment corp.
Position:
Qof f . should contact CMHC
Reasons:
Definition not meant to be static. Each case looked at on
own facts.
964100
XXXXXXXXXX S.Tevlin
Attention: XXXXXXXXXX
January 8, 1997
Dear Sirs:
Re: Mortgage Investment Corporation("MIC")
We are writing in response to your letter dated December 4, 1996 wherein you requested our opinion with respect to subsection 130.1(6) of the Income Tax Act (the "Act").
In particular you have asked that we confirm that a mobile home on leased land qualifies as eligible property to be mortgaged by an MIC. In this regard we offer the following general comments.
Subsection 2(1) of the National Housing Act ("NHA") defines a "house" as, "... a building or movable structure, or any part thereof, that is intended for human habitation and contains not more than two family housing units..".
As to whether a property constitutes "a building or moveable structure" for purposes of the definition is a question of fact that can only be determined on a case by case basis.
We recommend that you contact your local office of Canada Mortgage and Housing Corporation to determine whether a particular type of property would meet the definition of "house" found in the NHA.
The foregoing comments are given in accordance with the practice referred to in paragraph 22 of IC-70-6R3 dated December 30, 1996 and are not binding on Revenue Canada, Taxation.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
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