Housing

The "Business" Test in Happy Valley Farms Ltd. v. The Queen, 1986 CanLII 7434 (FC) If income is characterized as business income then 100% is subject to taxation. Only 50% of a capital gain is subject to taxation. Determining whether the business income characterization applies requires referring to the definition of a...

Swift v. The Queen, 2020 TCC 115 & Coates v. The Queen, 2011 TCC 74 & GST/HST In Ontario, for example, many taxpayers bought and/or renovated homes consecutively during the housing upturn. Consequently, it has been common for Canada Revenue Agency (“CRA”) to target the consecutive purchase and sale of 3 or 4 homes...

Exceptions to the CRA Flipping Rules for the Sale of New Houses The Canada Revenue Agency (CRA) has introduced flipping rules that apply to the sale of real estate. These rules aim to ensure that profits from the sale of properties are reported and taxed as business income rather than capital gains. However, CRA recognizes...

In response to the growing popularity of short-term rentals and their impact on housing availability, the Canadian federal government has introduced new tax regulations effective January 1, 2024. These rules aim to ensure compliance with local laws and promote the availability of long-term housing options. DENIAL OF EXPENSE DEDUCTIONS FOR...