I have a client who has status and an office on a reserve. They are a realtor. Does anyone have experience if their income would be tax exempt? The argument is most of the work is done at the office so most determining factors are leaning exempt except that the customers are all off-reserve.
I would be doubting this would fly unless the brokerage office is on said reserve and sales are also on said reserve.
Most real estate brokerages to my knowledge have rules against meeting clients in a home office and if there is a business office for said realtor he is precluded from a home expense deduction.
From what I gathered earlier this year, when I had to research a similar situation, it will probably not be exempt income if he is meeting with clients OFF reserve. See “Connecting factors for business income” in the link below:
https://www.canada.ca/en/revenue-agency/services/indigenous-peoples/information-indians.html
Also see this thread where I asked this community about it:
I think that would not work as the service is provided off reserve. Have you registered with CRA for DTS (Dedicated Telephone Support)? It is for small tax practitioners – you can call the DTS line and have high level support, usually they have some information at the time on the call, but they also research and send you confirming information with sources cited. Their phone number is 844-739-0019, they will register you and give you an access code. I have found it very useful.
Regards