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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
a right of any kind whatever, a share or a chose in action,
unless a contrary intention is evident, money,
a timber resource property,
the work in progress of a business that is a profession; and
the goodwill of a business, as referred to in subsection 13(34)
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.
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.
Change in
Use of Property
When the use of property changes from income-producing to
non-income-producing (i.e., personal use) or when it changes from personal use
(non-income-producing) to income-producing, there is a deemed disposal of the
property. Regarding real estate properties, see Change
in Use of Real Estate. These rules apply to rental properties and
principal residences, as well as 2nd homes that are not income-producing.
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