Witkin v. R., 98 DTC 1933, [1998] 3 CTC 2869 (TCC) -- summary under Reasonable Expectation of Profit

The taxpayers and other Canadians purchased a 99% interest in a partnership ("CL 1") which, in turn, owned a 99% interest in a Texas general partnership "(CL A") that had constructed a luxury residential condominium apartment complex in Dallas. In finding that the taxpayers had no reasonable expectation of profit from their investment in CL 1, Beaubier TCJ. noted that CL A had lost over $59 million in about four years and that the taxpayers had no right to reduce the costs of CL A given that all decisions regarding management of the partnership were required to be made by unanimous written consent of the partners.