Published: March 12, 2020
Last Updated: March 16, 2020
Subsection 18(12) of the Income Tax Act generally applies to Bed and Breakfast (B&B) Businesses
The Canada Revenue Agency (the Canadian income tax department, “CRA”) recently confirmed its view that subsection 18(12) of the Income Tax Act (which deals with home business expenses) generally applies to Bed and Breakfast (B&B) businesses. The CRA recognizes that an exception occurs in situations that fall within the same fact pattern as that in Sudbrack (2000 DTC 2521), a decision heard under the general procedures of the Tax Court of Canada, in which that Court ruled that subsection 18(12) did not apply.
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