Beauregard v. The Queen, 2014 DTC 1015 [at at 2560], 2013 TCC 287 (Informal Procedure) -- summary under Start-Up and Liquidation Costs

By services, 28 November, 2015

The taxpayers acquired a lot in order to build a health complex. Unable to secure any lease commitments, they abandoned the project and sold the lot. The Minister argued that the taxpayers had not yet started up a business, and that their sole purpose in acquiring the lot was a subsequent sale of the property.

Favreau J found that the taxpayers seriously intended to build and operate and office building. The loss on the lot itself was capital in nature, but the related expenses were deductible as business losses.

Topics and taglines
Topic
Income Tax Act - s. 18(1)(a) - Start-Up and Liquidation Costs
Tagline
aborted office leasing business was still a source of business losses
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Drupal 7 entity type
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Drupal 7 entity ID
335433
Extra import data
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