A taxpayer acquired a condominium unit and one parking space in 2017 for personal use, then acquired a second parking space on separate title in 2020 in the same building complex for personal use. The first parking space was sold along with the condo and subsequently the second parking space was sold separately. In finding that a portion of, or all of, the gain realized on the disposition of the parking spaces may be exempt pursuant to s. 40(2)(b), CRA indicated:
- the first parking space was a component of the housing unit (i.e., the condo).
- the holding of the second space on separate title and its sale to a different purchaser did not preclude it from being part of the housing unit.
CRA did not address the question of how to apply the s. 40(2)(b) formula to a sale of the second parking space, e.g., the formula was applied in the individual’s 2023 return to a sale of the condo and first parking space, then the second space was sold in 2024.