CRA indicates that deferring the date of disposition of a housing unit to well after the sale date and 366 days after the acquisition date would avoid the flipped property rules

Eight months after acquiring a housing unit, an individual signed an agreement to sell it, but with the date of transfer of ownership being set 366 days after the acquisition date, and with the residence in the meantime being leased to the purchaser.

CRA indicated that if the date of disposition of the residence occurred 366 days after the acquisition date, it would not constitute a flipped property. However, the determination of the disposition date would require an examination of the particular circumstances, including the legal effects and interaction between the sale agreement and the interim lease. That said, CRA noted its longstanding position that, absent sham, determining whether a contract was a lease or a contract for a sale was a function of the legal relationships created by the terms of the agreements, rather than the underlying economic realities.

Neal Armstrong. Summary of 9 October 2025 APFF Financial Planning Roundtable, Q.8 under s. 12(13)(b).