who is responsible for the property

In VTN 387(2), we noted that to have a “self-contained domestic establishment”, the taxpayer must own or lease a property, be responsible for its maintenance, and use the property as their principal place of residence. It was further noted that there would not be a SCDE where the individual only contributes to the expenses of the actual owner or lessee. Having a SCDE is important in situations such as where a claim for an eligible dependent credit is to be made (Paragraph 118(1)(b)) or where a tax-free allowance for board and lodging while working at a special worksite (Subsection 6(6)) is to be received.

In a March 2, 2015 Technical Interpretation (2014-0527281E5, Dagenais, Anne), CRA clarified that even if the individual does not own or lease the property but is responsible for it and pays expenses on a regular basis, the location may be a SCDE. Where the payments are random or irregular, it will not be a SCDE.