Jarquio v. Canada, 2003 DTC 5164, 2003 FCA 80 (FCA) -- summary under Business Source/Reasonable Expectation of Profit

The taxpayer, who derived personal benefits from the ownership of a two storey residence containing four bedrooms by having her family live on the premises with her, was correctly found to not have a reasonable expectation of profit given that she did not advertise, she took no steps to rent a vacant room when her mother died, she experienced expenses that consistently exceeded her rental income, and her calculations as to future profitability were not realistic.