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Glossary  -> Property

Property

Income Tax Act s. 248(1)

The wording of the definition of "property" in the Income Tax Act was revised, but the revision was not intended to change the application of the definition.  The definition of property is (words in italics were added by legislative change):

“property” means property of any kind whatever whether real or personal, immovable or movable, tangible or intangible, or corporeal or incorporeal and, without restricting the generality of the foregoing, includes
  1. a right of any kind whatever, a share or a chose in action,
  2. unless a contrary intention is evident, money,
  3. a timber resource property,
  4. the work in progress of a business that is a profession; and
  5. the goodwill of a business, as referred to in subsection 13(34)

Paragraph (e) was added by Bill C-29 Budget Implementation Act, 2016, No. 2, and came into force (became effective) January 1, 2017.

Investment income, other than capital gains, is considered property income.  What would normally be classed as capital gains can be considered to be business income.

Rental income can be considered property income, but rental income can also be classed as business income.

Property income is taxed differently from business income.

When a loss from property exceeds income from other sources and cannot be deducted on the current year tax return, it becomes a non-capital loss, and can be carried back to the previous 3 taxation years, or forward up to 20 taxation years.

Revised: October 15, 2021

 

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