Piché – Court of Quebec finds that a family realized capital gains from the sale of 3 newly-constructed residences in 3 years
A closely-knit family, who collectively constructed and sold three single family residences over the course of three years without reporting anything on their returns, and were assessed by the ARQ for having realized gains from adventures in the nature of trade, were able to come up with convincing stories as to how, due to various “vicissitudes” and unexpected twists and turns in their personal lives, all that had occurred. They were not “building entrepreneurs” and their appeals were allowed.
The principal residence exemption was not discussed.
Neal Armstrong. Summary of Piché v. Agence du revenu du Québec, 2020 QCCQ 1283 under s. 9 – capital gain v. profit – real estate.