Scott v. The Queen, 2010 TCC 401, 2010 DTC 1273 [at at 3910] -- summary under Subparagraph 40(2)(g)(ii)

The taxpayer made a loan to a corporation owned by his son and daughter-in-law, whose business failed. Boyle J. allowed the loss because, while the taxpayer clearly meant to support his son, the contemplated return would have exceeded the taxpayer's cost of funds, but for the default (or, in the case of the final advance, there was a purpose of trying to recover his investment). All that is required to avoid excluding a loss under s. 40(2)(g)(ii) is that one of the purposes of acquiring the debt is to gain income; where that condition is met, incidental purposes are not relevant.