As a result of breach to sell a personal residence, an individual receives $50,000 in damages from the defaulted purchaser. If the purchaser had intended to rent the residence to unrelated persons, could it recognize an allowable capital loss of $25,000? CRA responded:
[T]he purchaser is not entitled to a capital loss from paying the damages of $50,000, since he had not disposed of property as defined in subsection 248(1).