Home turned into a duplex and sell one of the unit?

Continuing the discussion from Capital gain:
Questions about home turned into duplex and sold one:-

Mr. A owns a home (or a piece of land & a junk house) valued $1,700,000.-, he bought it at $700,000.- in 2010. He decided to turn it into a duplex( unit 1 & unit 2 )in 2022 with a cost of $900,000.-
Mr. A will use unit 1 as his home and will sell unit 2 after one year.
What is the tax implication when selling unit 2? ACB?Capital gain ? or this is an income?

Go find a pro?

(If you are a pro and you’re asking a question like this, I’m sorry to say that perhaps you’re in the wrong field…)


Here’s a few places to start your research:

Or if you don’t want to try and figure it out yourself, you can always contact CRA for a ruling or technical interpretation, but be prepared to wait a year for an answer…

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I would talk to a lawyer.

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Turning it into a duplex is the easy part. Turning it into a separate POTL or separating the lot with a new roll number is the difficult (expensive) part.