In the course of discussing the deductibility of expenses incurred in a rental or bed and breakfast operation, CRA stated:
a taxpayer may deduct, from all other income, a loss from a business or property arising when the total expenses from one of these sources is greater than the income generated. However, the taxpayer cannot deduct a loss if the taxpayer’s rental activity is primarily aimed at sharing personal expenses related to a building and not for the purpose of making a profit or with a reasonable expectation of profit.