Bélanger v. The Queen, 2012 DTC 1235 [at at 3651], 2012 TCC 93 -- summary under Real Estate

Favreau J. dismissed the taxpayer's claim that his gain on five properties was capital in nature. The taxpayer operated a business in which his corporation would construct apartment buildings, which he would purchase on completion and then resell once they had 75% occupancy. Thirty six properties were sold from 2001 to 2007. Favreau J. found that the sale of the five properties was consistent with the taxpayer's business plan and modus operandi. The taxpayer's alternative explanation, that his decision to sell the five properties related to his separating from his wife, was implausible because, inter alia, the properties were sold in April 2005 and he did not tell his wife he wanted to separate until February 2006.