Sheridan J. permitted the taxpayer's rental losses from the studio apartment she had purchased in a condominium near a ski resort, as disallowing the losses would be to second-guess the taxpayer's business judgment. One of the Minister's contentions was that the taxpayer had obtained the apartment for personal use, but her testimony that she used it fewer than 10% of her available 120 days in any year was unshaken on cross-examination.
Sheridan J. noted some weaknesses in the taxpayer's evidence. For example, she had failed to produce her Lease Management Agreement to demonstrate the nature of her rental managers' activities (although it was clear from the record that there was such an agreement and that the Minister had seen it). She also produced a letter from condominium management to prove her costs, where banking records would have been more definitive. Ultimately, however, there was little cause not to take the taxpayer at her word.