After concluding that “the operator of a bed and breakfast, who has a personal residence in which bed and breakfast rooms are rented out on a short-term basis, is generally considered to be carrying on a business” rather than having a source of property income, CRA stated:
Whether or not the rental of a building by an individual is a business, the property may be considered a "rental property" for purposes of the CCA restrictions under subsection 1100(11) … . [A] rental property is defined as a building owned by a taxpayer and used principally to gain or produce gross revenue that is rent. The term "principally" normally means 50% of the time for the purpose of gaining or producing gross revenue that is rent.