Richards v. The Queen (December 31, 2019 – 2019 TCC 289, MacPhee J.).
Précis: The taxpayer sought to deduct professional fees of roughly $75,000 incurred on the breakup of her marriage and business relationship with her former spouse. After a careful consideration of the law and the salient facts the Court allowed a deduction of roughly 1/3 of the fees claimed.
Decision: This case essentially boiled down to a balancing of the purely personal component of the expenses claimed and those related to the income from her business interests:
 But in this very particular fact situation, there is no question that professional fees were incurred seeking both the support and/or the payment of dividends by the corporations and the redemption of the Appellant’s shares. These costs were intermingled. Therefore, I have apportioned the fees in issue. Unfortunately, no effort was made by the Appellant in this regard. Based upon my review of the evidence, I will make an estimate that 25% of amount paid in the Oppression litigation was incurred in order to receive income. This estimate attempts to reflect the fact that the dominant intention of the Appellant in incurring the professional fees related to the Oppression Motion was the protection of her interests in the shares of the corporations.
 For clarification, the Appellant shall be allowed to deduct the additional amount of $24,242.47 as professional expenses in 2013. The remainder of the professional fees claimed, amounting to $49,336.80 are not allowed to be claimed as expenses incurred to produce income.
 Both parties questioned whether the legal and accounting fees in issue may be added to the adjusted cost base of any shares redeemed in 2013 in their pleadings. Neither party dealt with these issues at trial, and from what I can tell, the application of these sections did not make up part of the assessment before the Court. Therefore, I will not deal with these issues in the Judgement.
 Given the divided success of the parties, each party shall be responsible for their own costs.