CRA considers that a housing unit includes a co-ownership interest therein for purposes of the flipped property rules

An individual who had held a 1/2 ownership interest in a cottage for a number of years, acquired the other 1/2 ownership interest in 2025 shortly before selling a 1/2 ownership interest in the cottage to a third party.

CRA considers that the reference in the flipped property rules to a housing unit includes a co-ownership interest therein. Accordingly, he would be considered to have held a housing unit for more than 365 days in respect of his sale of the co-ownership interest, so that the flipped property rules would not apply.

Neal Armstrong. Summary of 9 October 2025 APFF Financial Planning Roundtable, Q.7 under s. 12(13)(a)(i).