For the purposes of using the First-time Homebuyer Credit, a taxpayer who was living in a shed on his property was deemed not to have owned a principal residence within the three years prior to the purchase of a new home. After losing his home in a fire, the taxpayer lived with friends, family, and his girlfriend, and then moved into a storage shed on his property. The taxpayer only spent about 40% of his time living in the shed; the rest of the time was spent living mostly with his girlfriend. The shed was found not to be the taxpayer’s principal residence because he did not spend the majority of his time there. (CCA 201104037)
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