Does a rental property acquired to replace a parking lot (generating rental income) that was expropriated qualify as a "replacement property"? In responding negatively, CRA stated:
[I]n order to satisfy the condition in paragraph 44(5)(a.1), the replacement property should have the same physical characteristics as the former property. Since a building does not have the same physical characteristics as a parking lot, it is our view that the building … does not satisfy the condition in paragraph 44(5)(a.1) even though both the parking lot and the building generate rental income.