Bernier v. The Queen, 2004 DTC 3235, 2004 TCC 376 -- summary under Subparagraph 40(2)(g)(ii)

The taxpayer was entitled to recognize under s. 39(2) capital losses incurred in a Bahamian margin account when U.S.-dollar margin loans were repaid, notwithstanding that the taxpayer was unable to provide evidence that the margin account was placed in investments. As s. 39(2) constitutes an exception to the normal rules applicable to the calculation of capital gains and capital losses, the restriction in s. 40(2)(g)(ii) had no application.