Bill C-298

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First Reading

	1nd Session, 35th Parliament, 42-43 Elizabeth II, 1994
	The House of Commons of Canada
	BILL C-298
	An Act to amend the Income Tax Act (deduction of interest on mortgage loans)
R.S., c. 1 (5th Supp.); 1994, cc. 7, 8, 13, 21, 29	Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
	*1. The Income Tax Act* is amended by adding the following after section 60.2:**
Interest on a mortgage loan	60.3 (1) Subject to subsection (2), there may be deducted in computing a taxpayer's income for a taxation year an amount equal to the interest paid by the taxpayer in the year to a mortgage lender or hypothecary creditor on the first $100,000 of a mortgage or hypothecary loan secured by the individual's qualifying home where
	(a) the individual acquires the qualifying home after December 31, 1994;
	(b) the individual intends, at the time the individual acquires the qualifying home, to use it as his principal place of residence within a year from the time the individual acquires the qualifying home;
	(c) the individual is resident in Canada when he acquires the qualifying home; and
	(d) the individual has never acquired a qualifying home before acquiring the quali fying home in respect of which he deducts the amount paid in interest.
More than one purchaser	(2) Where the qualifying home is acquired by more than one individual, the amount that may be deducted by the taxpayer in computing his income under subsection (1) shall be equal to the portion of the interest paid by the taxpayer on the first $100,000 of the hypothecary or mortgage loan.
``qualifying home'' « habitation admissible »	(3) For the purposes of this section, ``qualifying home'' has the meaning assigned by subsection 146.01(1).