Roseland Farms Ltd. v. R., 99 DTC 5704, [1999] 4 CTC 348 (FCTD), aff'd 2001 DTC 5392, 2001 FCA 167 -- summary under Real Estate

Before going on to find that the taxpayer did not realize a capital gain from the disposition of a farm property, Sharlow J. noted (at p. 5706) that although "the method of financing the purchase of property may be important in distinguishing capital from income if, as a practical matter, the property is so burdened with debt that the owner is unlikely to recover its costs without selling it", here this was not as important a consideration because, although there was 100% debt financing, this was provided by way of shareholder loans of which over 30% did not bear interest and had no fixed repayment terms.