Taylor v. Canada, 2002 DTC 7596, 2002 FCA 425 -- summary under Subsection 31(1)

Although the taxpayer was part of a traditional farming family, had a deep commitment to the land, invested substantial capital in his farm and spent perhaps more time working on his farm than he spent earning his employment income, the Tax Court Judge had erroneously concluded that the taxpayer was a Class 2 farmer because of the taxpayer's failure to establish that the farm could reasonably be expected to produce substantial income in the future. Moreover, in the final year under review the farm would have showed a profit but for the elective deduction of capital cost allowance and, in fact, over the entire twelve-year period for which there was evidence, the farm would have been profitable in at least six years if no capital cost allowance had been claimed.