CRA considers rentals of recreational properties and of regular rental properties to be “similar” use

CRA somewhat generously considers that where insurance proceeds from the destruction of a year-round rental property are used to acquire chalets which will be rented out, the chalets generally will satisfy the requirement in s. 44(5)(a.1) of the involuntary-disposition replacement property rollover rules that their intended use is "a use that is the same as or similar to the use to which the taxpayer … put the former property."  The wording used seems to imply that the replacement of rental properties of different types (e.g., apartments, shopping centres or office buildings) could satisfy this test.

Neal Armstrong. Summary of 13 November 2014 T.I. 2014-0535041E5 F under s. 44(5).