An interesting read for those of you who like to flip properties.
The Income Tax Act itself has no criteria to distinguish when profits from real estate activities are taxed as business income or capital gain, though the case law has developed a number of factor that take into account in making this distinction.
- nature of the property sold
- length of time the taxpayer owned the property
- frequency & number of transactions carried out by the taxpayer
- improvements done to the property by the taxpayer
- intention of the taxpayer at the time the property was acquired
The article is available on the Mortgage Brokers City web. Enjoy.