Effective January 2023, a gain from a disposition of a property, including rentals, that was held for less than 356 days of the year will be considered ‘Business Income’ as opposed to ‘Capital Gain’.  

Unless the disposition is due to one of the life-qualifying events such as death, childbirth, divorce, disability, involuntary employment termination, etc.

However, unfortunately, CRA will not allow a loss of business income from the property and it would be deemed as nil if you did have a loss.

‍