Tax Implication on Lot splitting - Nova Scotia

[Andrew MacLean]

Like most people I'm on the hunt for a proper BRRRR which as most people can tell has it's challenges. I'm looking at developing Area, smaller municipalities with some R-4 Rural (Duplex or Rural Comm) that could be used as a land split to get the initial investment money back rather than trying to force appreciate the home itself and simply Rent at a slight cash flow ($50-100/mnth, $150 is the best I've found on MLS)

There's obviously some serious risk here because the initial $500-$3000 for the application doesn't come back to you, and you could very well be denied depending on exactly what you buy then left with a cash-in property with low returns. Does anyone here have experience with single splitting a lot? What's the tax implication for a Rental Buy w/ land split and sale? I've heard Fully taxed as income and I've heard $0 because you're devaluing your current asset by that amount (Loss) which off sets you sale gain. 

Thanks in advance.