The Income Tax Act (ITA) allows eligible individuals to claim a clergy residence deduction. Eligibility is determined under both a “status test” and a “function test.” In Quebec, a “usage test” must also be met.
Under the “status test,” an individual must be one of the following:
Under the “function test,” an individual must be in charge of, or minister to, a diocese, parish, or congregation or be engaged exclusively in full-time administrative service by appointment of a religious order or a religious denomination.
Quebec also requires a “usage test” be met in order to make a clergy residence deduction for Quebec provincial income tax purposes.
CCCC has created a fillable T1223 form with helpful commentary accessible to CCCC members: