Principal Issues: Whether in a particular situation described, a housing unit can be excluded from the definition of “flipped property” (as defined in subsection 12(13) of the Act), by reason of the exception in subparagraph 12(13)(b)(i). Essentially, whether a housing unit, which was received by a child from their deceased parent's estate and held by the child for less than 365 days prior to its disposition, can be excluded from the application of the flipped property rules (i.e., subsections 12(12) and 12(14)) on the basis that the disposition can reasonably be considered to have occurred due to the death of the taxpayer's parent.
Position: Question of fact.
Reasons: Depending on the facts of the situation, where there is a discernable connection between the two events (i.e., the death of the parent and the disposal of the housing unit by the child beneficiary), such that it may be possible to conclude that the disposition of the housing unit by the taxpayer can reasonably be considered to have occurred due to the death of a related person, the disposition may be excluded from the application of the flipped property rules in subsections 12(12)-12(14).
