The CRA Provides General Comments Regarding the Taxation of Vacation Property

In 2014-0528241E5 the taxpayer asked whether it would be required to pay capital gains tax on vacation property. The property was in very poor condition when it was purchased by the taxpayer, and the taxpayer spent considerable funds to make it livable.

The CRA set out general comments regarding the taxation of the proceeds from the sale of the cabin, assuming the cabin was “personal use property” of the taxpayer.