Dubois c. La Reine, 2007 DTC 1534, 2007 TCC 461 (Informal Procedure) -- summary under Contract or Option Cancellation

By services, 28 November, 2015

In finding that legal fees incurred by the taxpayer as a result of her cancellation of an agreement to purchase a building were capital expenditures, Paris J. stated (at para. 21):

"If the Appellant in the case at bar had completed the purchase of the building, its price would certainly have been a capital expenditure. The amount that she paid to get release from her obligation to purchase the building is therefore closely tied to what would have been a capital asset, and its character would be the same."

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