Rezek v. Canada, 2005 DTC 5373, 2005 FCA 227 -- summary under Property

A "spread" (under which the taxpayer would purchase a convertible debenture, a convertible preferred share or a warrant and short sell the corresponding number of common shares into which the convertible security was convertible) was not collectively a type of property, as found by the Tax Court judge, but was to be analyzed on the basis that the rights associated with the holding of the convertible securities and the rights, if any, associated with a short sale of common shares were independent rights. Rothstein J.A. stated (at p. 5380) that the fact that the convertible security was used to satisfy margin requirement respecting the short sale transaction established "a contractual overlay on each component of the convertible hedge" rather than transforming separate properties into a single property.