| Protected B when completed | ||||||||||||
| Property flipping | ||||||||||||
| A flipped property is a housing unit (including a rental property) located in Canada or a right to acquire a housing unit located in Canada that you owned or held, for less than 365 consecutive days before its disposition (12-month holding period). A property is not considered a flipped property if it was already considered to be inventory or was owned or held for 365 or more consecutive days before its disposition or if the disposition occurred due to, or in anticipation of, certain life events as listed at line 17906 below. |
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| If you disposed of a flipped property, the resulting gain on the disposition is taxable as business income and not as a capital gain. To report this transaction, complete Form T2125, Statement of Business Income or Professional Activities. |
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| Did you dispose of a housing unit, or a right to acquire a housing unit, located in Canada (including a rental property) that was not already considered inventory and was owned for |
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| less than 365 consecutive days before the disposition? | 17905 | Yes | No | |||||||||
| If no, the housing unit is not considered a flipped property and any gain from the disposition of the property is taxable as a capital gain. |
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| If yes, was the disposition due to, or in anticipation of, any of the following life events? (tick the boxes that apply, if any) |
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| 17906 | 1 | the death of the taxpayer or a related person | ||||||||||
| 2 | a related person joining the taxpayer’s household or the taxpayer joining a related person's household | |||||||||||
| (for example, moving in with a spouse or common-law partner, for the birth of a child, adoption, or care of an elderly parent) |
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| 3 | the breakdown of a marriage or common-law partnership where the taxpayer had been living separate and | |||||||||||
| apart from their spouse or common-law partner for at least 90 days before the disposition | ||||||||||||
| 4 | a threat to the personal safety of the taxpayer or a related person (for example, domestic violence) | |||||||||||
| 5 | a serious disability or illness of the taxpayer or a related person | |||||||||||
| 6 | the eligible relocation of the taxpayer or their spouse or common-law partner where the taxpayer's new | |||||||||||
| home is at least 40 kilometres closer to the new work location or school (generally, an eligible relocation allows the taxpayer to carry on business, be employed or attend full-time post-secondary education) |
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| 7 | the involuntary termination of employment of the taxpayer or their spouse or common-law partner | |||||||||||
| 8 | the insolvency of the taxpayer (for example, due to an accumulation of debt) | |||||||||||
| 9 | the destruction or expropriation of the taxpayer's property (for example, when the property is destroyed due | |||||||||||
| to natural or man-made disaster) | ||||||||||||
| If you answered yes at line 17905 and one or more of the life events above apply to you, the housing unit is not considered a flipped property and any gain from the disposition of the property is taxable as a capital gain. For more information, go to canada.ca/real-estate-income. |
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| If you answered yes at line 17905 and none of the life events above apply to you, the housing unit is considered a flipped property and the gain is taxable as business income. To report this transaction, complete Form T2125, Statement of Business Income or Professional Activities. For more information, go to canada.ca/taxes-businesses-income or see Guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income. |
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| For more information about property flipping, go to canada.ca/cra-property-flipping. | ||||||||||||
| See the privacy notice on your return. | ||||||||||||
| 5000-S3 E (23) | Page 3 of 3 | |||||||||||