CRA considers that the holding period for a housing unit under the flipped property rules commences when it becomes habitable

In general, the “flipped property” rules can apply to a Canadian housing unit that is owned by the taxpayer for a period of less than 365 consecutive days prior to its disposition. In the situation where an individual constructs a housing unit, CRA will not consider the 365-day period to start running until the housing unit becomes habitable.

Neal Armstrong. Summary of 10 October 2024 APFF Financial Strategies & Instruments Roundtable, Q.3 under s. 12(13).