CRA confirms that “land” generally includes buildings and other improvements
Reg. 1102(2) effectively excludes subjacent land from buildings and other depreciable property, and s. 18(3) defines land for s. 18(2) purposes to exclude buildings and other improvements. S. 70(5.2) provides for the deemed disposition on death for fair market value proceeds of inter alia "land" inventory.
CRA confirmed that for the purposes of the Act, and in the absence of a specific provision to the contrary such as s. 18(3), “a building or other structure affixed to land would generally be considered as part of the land,” so that “for the purposes of subsection 70(5.2) … ‘land’ includes not only vacant land, but also land on which other real property such as houses or condos are erected.”