How will the CRA analyze the concept of a subdividing of a single or multiple buildings? CRA responded:
Before concluding that subsection 248(21) applies in a particular situation, it is necessary to determine, first, whether a property is the subject of a partition between persons with undivided interests and, second, whether the fair market value of each individual interest in the property after the partition is equal to the fair market value of each proportionate interest that existed before the partition. ...
It appears that in some, but not all, circumstances it may be possible for the rules in subsection 248(21) to apply in the context of a partition of a building and subjacent land, previously held in undivided co-ownership, between persons who become, as a result of the partition, owners of a unit of the building in divided co-ownership.