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A BENEFIT OF DIVORCE? AVOIDING THE ANTI-FLIPPING RULES

By Steve Benmor | - August 6, 2025

Steve Benmor is a recognized divorce lawyer, family mediator, arbitrator, speaker, writer and educator. Mr. Benmor has worked as lead counsel in many divorce trials, held many leadership positions in the legal community and has been regularly interviewed on television, radio and in newspapers as an expert in Family Law.

In Canada, under the new anti-flipping rule, 100% of the profit made from the sale of a flipped property is taxed as business income.

The definition of a “flipped property” includes any residential property that was owned by the taxpayer for less than 1 year before its re-sale.

This deeming rule will not allow a taxpayer to utilize the “principal residence” exemption even if the property meets the definition of a principal residence.

So if the property was owned by the taxpayer for less than one year prior to its sale, the profit is taxed as business income (100%) and not as a capital gain.

Are there exceptions?

Yes.  One is divorce.  The tax rules exempt separating spouses from the anti-flipping rules.

Steve Benmor, B.Sc., LL.B., LL.M. (Family Law), C.S., Cert.F.Med., C.Arb., FDRP PC, is the founder and principal lawyer of Benmor Family Law Group, a boutique matrimonial law firm in downtown Toronto. He is a Certified Specialist in Family Law, a Certified Specialist in Parenting Coordination and was admitted as a Fellow to the prestigious International Academy of Family Lawyers. Steve is regularly retained as a Divorce Mediator/Arbitrator and Parenting Coordinator. Steve uses his 30 years of in-depth knowledge of family law, court-room experience and expert problem-solving skills in Divorce Mediation/Arbitration to help spouses reach fair, fast and cooperative divorce settlements without the financial losses, emotional costs and lengthy delays from divorce court.

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