CRA confirms that a room or a basement can be a “residential property” for s. 67.7 purposes, but not a “housing unit” for flipped property purposes

The definition of “flipped property” in s. 12(13)(a) refers to a “housing unit;” whereas the definition of “non-compliant short-term rental” in s. 67.7(1) depends on the concept of a “residential property” (also defined in s. 67.7(1)).

What is the difference? For example, would the latter include a bedroom or a section of a residence, such as a basement?

CRA indicated that the term “housing unit” used in the flipped property rules was restricted to a single housing unit.

As a residential property, as defined, referred to all or any part of a (legally compliant) house, apartment, condominium unit, etc., a room or basement would qualify as a residential property for such purposes.

Neal Armstrong. Summary of 9 October 2025 APFF Financial Planning Roundtable, Q.9 under s. 67.7(1) – residential property.