Précis: In 2006 Cynthia DaCosta, a real estate agent, arranged to purchase two condos, one in her own name and one in the name of her 17 year old granddaughter. The sales closed in 2010. Cynthia sold her granddaughter’s condo one month later and her condo two months later, each at a profit of roughly $100,000. Neither reported any income from the sales. CRA assessed the sales as being on income account and imposed gross negligence penalties. The Tax Court dismissed Cynthia’s appeal, with costs, but allowed her granddaughter’s appeal, without costs, to the extent of vacating the gross negligence penalties.
DaCosta v. R. – TCC: Gross negligence penalties set aside for one of two taxpayers in property “flips”Plus >