Belcourt Properties – Tax Court of Canada finds that the taxpayer achieved capital gains treatment on the prompt sale of the commercial-use portion of its condo development

A taxpayer which is a real estate developer may be able to establish that a particular property was acquired as a rental-income investment rather than inventory (see Leasehold Construction and Toolsie).

Here the taxpayer was able to achieve capital account treatment on the sale of the first floor rental portion of properties which otherwise had been developed by it as condo developments notwithstanding that the sale thereof occurred shortly after completion of the condo sales.

Neal Armstrong. Summary of Belcourt Properties Inc. v. The Queen, 2014 DTC 1182 [at 3678], 2014 TCC 208 under s. 9 – Capital gain v. profit – real estate.