4 November 2005 External T.I. 2004-0108271E5 F - Frais juridiques-105(2) -- summary under Legal and other Professional Fees

Regarding rights that arose under the will of the taxpayer's spouse as a special legacy, CRA indicated that only the part of the legal costs that was incurred to defend the right for expenses and for the maintenance of the property was deductible in computing the taxpayer's income, whereas the part of the costs that was incurred to defend the right of use of the property was an expense of a capital nature.