Kelly v. The Queen, 2012 DTC 1109 [at at 3055], 2012 TCC 66 -- summary under Business Judgment

Sheridan J. permitted the deduction of the taxpayer's rental losses from the studio apartment she had purchased in a condominium near a ski resort. Her personal use of the apartment in any given year never exceeded 10% of the days she had it available, and its purpose was otherwise to collect rental income. While the taxpayer's business judgment was questionable in the circumstances (having failed to predict the increasing competition for rental units in the area and the extent of the expenses involved in the business of renting), it was not for the Minister to second-guess the taxpayer's business judgment.