Johnston v. Canada, 2003 DTC 5295, 2003 FCA 185 -- summary under Subsection 62(3)

By services, 28 November, 2015

When the taxpayer moved to Winnipeg, he received two mortgage loans on his Toronto home to finance the acquisition of a Winnipeg home, and then paid off the loans two months later when he sold the Toronto home. Sharlow J.A. held (at p. 5297) that:

"The definition of 'moving expenses', read in its entirety, indicates that interest on money borrowed to purchase a home in the new work location is not within the definition, even if the loan is secured by a mortgage on a home in the former work location."

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