I-3 - Taxation Act

Section 91.3 Disposition versions

2024-05-07

91.3. For the purposes of sections 91.2 and 91.4, a flipped property of a taxpayer means a property of the taxpayer (other than a property, or a right to acquire a property, that would be a property described in the taxpayer’s inventory if the definition of “inventory” in section 1 were applied without reference to section 91.2) in respect of which the following conditions are met:

(a)  prior to its disposition by the taxpayer, the property was either

i.  a housing unit located in Canada, or

ii.  a right to acquire a housing unit located in Canada; and

(b)  the property was owned by the taxpayer for less than 365 consecutive days prior to its disposition, unless it can reasonably be considered that the disposition occurred due to, or in anticipation of, one or more of the following events:

i.  the death of the taxpayer or a person related to the taxpayer,

ii.  one or more persons related to the taxpayer becoming members of the taxpayer’s household or the taxpayer becoming a member of a related person’s household,

iii.  the breakdown of the marriage of the taxpayer if the taxpayer has been living separate and apart from the taxpayer’s spouse for at least 90 days prior to the disposition,

iv.  a threat to the personal safety of the taxpayer or a related person,

v.  the taxpayer or a related person suffering from a serious disability or illness,

vi.  an eligible relocation of the taxpayer or the taxpayer’s spouse if the definition of “eligible relocation” in section 349.1 were applied without reference to the requirements for the new work location and the new residence to be in Canada,

vii.  an involuntary termination of the employment of the taxpayer or the taxpayer’s spouse,

viii.  the insolvency of the taxpayer, or

ix.  the destruction or expropriation of the housing unit.

2023, c. 19, s. 16; 2024, c. 11, s. 48.

2023-09-26

91.3. For the purposes of sections 91.2 and 91.4, a flipped property of a taxpayer means a housing unit of the taxpayer located in Canada (other than a property that would be a property described in the taxpayer’s inventory if the definition of “inventory” in section 1 applied without reference to section 91.2) that was owned by the taxpayer for less than 365 consecutive days prior to the disposition of the property, unless it can reasonably be considered that the disposition occurred due to, or in anticipation of, one or more of the following events:

(a)  the death of the taxpayer or a person related to the taxpayer;

(b)  one or more persons related to the taxpayer becoming members of the taxpayer’s household or the taxpayer becoming a member of a related person’s household;

(c)  the breakdown of the marriage of the taxpayer if the taxpayer has been living separate and apart from the taxpayer’s spouse for at least 90 days prior to the disposition;

(d)  a threat to the personal safety of the taxpayer or a related person;

(e)  the taxpayer or a related person suffering from a serious disability or illness;

(f)  an eligible relocation of the taxpayer or the taxpayer’s spouse, if the definition of “eligible relocation” in section 349.1 were applied without reference to the requirements for the new work location and the new residence to be in Canada;

(g)  an involuntary termination of the employment of the taxpayer or the taxpayer’s spouse;

(h)  the insolvency of the taxpayer; or

(i)  the destruction or expropriation of the housing unit.

2023, c. 19, s. 16.