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posted Oct 31, 2019 1:53:50 AM

Rent in GNWT. Own house in on. Lived GNWT 3 yrs. Rent out house in ON. Do we qualify t2222

Wife has a good job with GNWT but I cannot find good employment. We rent out our house in ONT. To keep insurance. We rent here in GNWT but cannot afford to purchase house.

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Level 15
Oct 31, 2019 1:53:53 AM

You qualify for the Northern Residents Deduction if you lived on a permanent basis in a prescribed zone for a continuous period of at least six months. This means you must "maintain a dwelling" there and be able to provide proof if CRA requests supporting documents. 

Here is what CRA says about maintaining a dwelling: A dwelling means a self-contained domestic establishment. Generally, this is a complete and separate living unit with a kitchen, bathroom, sleeping facilities, and its own private access. It includes a house, apartment, mobile home, or other similar place of residence in which a person usually sleeps and eats. It does not include a bunkhouse, dormitory, hotel room, or room in a boarding house. We consider you to have maintained and lived in a dwelling, even if your employer let you live there rent-free and paid all the utility, maintenance, and other costs related to the dwelling. Each person living in the dwelling can claim the basic residency amount as a deduction on their return. However, if more than one person claims the basic residency amount for a particular period and dwelling, no one in that household can claim the additional residency amount for that period and dwelling.

1 Replies
Level 15
Oct 31, 2019 1:53:53 AM

You qualify for the Northern Residents Deduction if you lived on a permanent basis in a prescribed zone for a continuous period of at least six months. This means you must "maintain a dwelling" there and be able to provide proof if CRA requests supporting documents. 

Here is what CRA says about maintaining a dwelling: A dwelling means a self-contained domestic establishment. Generally, this is a complete and separate living unit with a kitchen, bathroom, sleeping facilities, and its own private access. It includes a house, apartment, mobile home, or other similar place of residence in which a person usually sleeps and eats. It does not include a bunkhouse, dormitory, hotel room, or room in a boarding house. We consider you to have maintained and lived in a dwelling, even if your employer let you live there rent-free and paid all the utility, maintenance, and other costs related to the dwelling. Each person living in the dwelling can claim the basic residency amount as a deduction on their return. However, if more than one person claims the basic residency amount for a particular period and dwelling, no one in that household can claim the additional residency amount for that period and dwelling.