Chevalier – Court of Quebec finds that the subdivision of a residential land into around 30 serviced building lots by the purchaser-developer did not scupper capital gains treatment

An individual who had held property for her personal residential use, was approached by a housing developer, who agreed to purchase her land on the basis that it would acquire around 30 fully-serviced building lots, with it doing all the work to make this subdivision and addition of the services happen. Lewis JCQ found (in reliance inter alia on Latulippe) that the taxpayer’s gain was on capital account given her lack of involvement in the development work.

Neal Armstrong. Summary of Chevalier v. Agence du revenu du Québec, 2020 QCCQ 2220 under s. 9 – capital gain v. profit – real estate.