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Posts tagged "Losses"

Leonard v. R. – TCC: Taxpayer partially successful in claiming loss on foreclosure proceeding was deductible – adventure in the nature of trade
May 21, 2021 By Bill Innes
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Précis: Mr. Leonard claimed a non-capital loss in the amount of $1,472,006 in 2011 arising out of foreclosure proceedings in a complex land deal. CRA denied the loss. That also had the result of increasing the family income which reduced the Canada Child Tax Benefit which his wife had claimed. They both appealed to the Tax Court. The issue in the main appeal was whether the loss incurred by Mr. Leonard was on income or capital account. The Tax Court found that there was another issue to be determined, i.e., the quantum of the loss. The Tax Court found that Mr. Leonard was engaged in an adventure in the nature of trade and that the loss was on income account. Nevertheless the Court concluded that Mr. Leonard’s loss claim was overstated and reduced his loss to $826,426. Thus both his appeal and that of his spouse were allowed.
Leonard v. R. – TCC: Taxpayer partially successful in claiming loss on foreclosure proceeding was deductible – adventure in the nature of tradeREAD MORE »
Peach v. R. – TCC: Taxpayer denied business losses on rental property, must include gain on transfer of property to son
Apr 09, 2020 By Bill Innes
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Précis: The taxpayer claimed business losses on real property owned by him in 2011. He also claimed losses from a financial services business carried on by him under the name Harold’s Financial Services (“HFS”) in 2011. (He had unsuccessfully appealed the same points in respect of his 2009 and 2010 taxation years in a prior appeal before both the Tax Court and the Federal Court of Appeal.) Finally he did not report a gain ($14,437) on a property disposed of by him to his son (for what CRA alleged was less than fair market value). The Tax Court accepted CRA’s position on both points and dismissed the appeal. There was no award of costs since this was an informal procedure appeal.
Peach v. R. – TCC: Taxpayer denied business losses on rental property, must include gain on transfer of property to sonREAD MORE »
Crocket v. R. – TCC: Taxpayer entitled to deduct losses from rental property – Court finds predominant intention was to earn a profit
Oct 28, 2019 By Bill Innes
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Précis: The taxpayer deducted operating losses from “a vacation rental home, owned by the Appellant’s mother but rented by the Appellant, located in Tulameen, British Columbia. The amounts of claimed losses in issue were $28,938.34 in 2013 and $25,903.43 in 2014.” [Para. 1]. The taxpayer was self-represented. The Court found that the taxpayer’s predominant purpose was to earn a profit from the rental property and accordingly allowed him to deduct the losses in full. There was no order as to costs since this was an informal procedure appeal.
Crocket v. R. – TCC: Taxpayer entitled to deduct losses from rental property – Court finds predominant intention was to earn a profitREAD MORE »
Soheili v. R. – TCC: Taxpayer denied losses on sale of personal home
Sep 20, 2017 By Bill Innes
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Précis: This case involved loss carryforwards denied by CRA. The taxpayer had claimed loss carry forwards of $29,520 in 2010 and $5,520 in 2011. A CRA audit allowed $6,120 loss carry forwards from 2009 into 2010 and denied the balance of the losses claimed. The taxpayer appealed to the Tax Court. In the Tax Court the Minister defended the assessments under appeal on the basis that the losses all arose from a home the taxpayer had built for his family. The Minister argued that no losses should have been allowed at all at the audit level. Although the taxpayer never occupied the property in question the Court concluded that it had been both acquired and held as the taxpayer’s personal property.
Soheili v. R. – TCC: Taxpayer denied losses on sale of personal homeREAD MORE »
Maynard v. R. - FCA: Appeal of penalties on fictitious losses dismissed from the bench with costs
Nov 02, 2016 By Bill Innes
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Précis: This is an appeal of a Tax Court decision blogged earlier on this site. It was another fictitious business loss case where the only issue was the imposition of a gross negligence penalty; in this case both husband and wife had claimed fictitious losses. They were unsuccessful in the Tax Court and their appeal was dismissed, with costs, from the bench by the Federal Court of Appeal.
Maynard v. R. - FCA: Appeal of penalties on fictitious losses dismissed from the bench with costsREAD MORE »
DeGennaro v. R. - TCC: Another Fiscal Arbitrator type case down in flames
May 25, 2016 By Bill Innes
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Précis: This is another in the long line of Fiscal Arbitrator type decisions. Mr. DeGennaro unsuccessfully attempted to claim roughly $700,000 in business losses and was assessed a gross negligence penalty of roughly $100,000. His appeal of the penalty was dismissed, with costs to the Crown.
DeGennaro v. R. - TCC: Another Fiscal Arbitrator type case down in flamesREAD MORE »
Turner v. R. - TCC: Tax Court rejects evidence of non-capital losses available for carry forward
Apr 25, 2016 By Bill Innes
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Précis: Mr. Turner was a retired electrical engineer. In each of 2012 and 2013 he claimed roughly $45,000 of non-capital losses carried forward from preceding taxation years. His evidence was that the losses arose from a series of bad investment decisions made over a period stretching back as far as 1991 and going up to 2004. He had essentially no documentation to support his claim and the court did not accept his evidence that he was in the business of dealing in securities prior to 2005. Accordingly the appeal was dismissed. As this was an informal procedure appeal there was no order as to costs.
Turner v. R. - TCC: Tax Court rejects evidence of non-capital losses available for carry forwardREAD MORE »
Daszkiewicz v. R. - TCC: Gross negligence penalties affirmed - fictitious business losses
Feb 23, 2016 By Bill Innes
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Précis: Another fictitious business loss case where the only issue was the imposition of gross negligence penalties with respect to fictitious business losses. The appeal was dismissed with costs.
Daszkiewicz v. R. - TCC: Gross negligence penalties affirmed - fictitious business lossesREAD MORE »
Maynard v. R. - TCC: Gross negligence penalties affirmed - fictitious business losses
Feb 18, 2016 By Bill Innes
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Précis: Another fictitious business loss case where the only issue was the imposition of a gross negligence penalty, in this case on both husband and wife who had both claimed fictitious losses. The appeal was dismissed with costs.
Maynard v. R. - TCC: Gross negligence penalties affirmed - fictitious business lossesREAD MORE »
Brathwaite v. R. - TCC: Gross negligence penalties deleted in part - fictitious business losses
Feb 16, 2016 By Bill Innes
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Précis: Another fictitious business loss case where the only issue was the imposition of a gross negligence penalties to various taxation years. In an unusual twist Ms. Brathwaite was successful in having the largest penalty (2008) deleted. Her co-appellant, Mr. Thompson had his penalty for 2008 deleted. The appeals were allowed in part with one set of costs to the Crown in the amount of 60% of the Tariff.
Brathwaite v. R. - TCC: Gross negligence penalties deleted in part - fictitious business lossesREAD MORE »

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