necessary

The estate of the deceased taxpayer was unable to establish that more than one-half hectare of a 1.4 hectare property was necessary for the use of the property as a principal resident notwithstanding evidence that the deceased taxpayer ate daily from fruits and vegetables harvested from the property. Ripp T.C.J. stated (at p. 336) that:

"The word 'necessary' in the section 54 definition of 'principal residence' connotes a term that is indispensable, not one that is convenient, useful or suitable."

A partnership ("ICON") of which the taxpayer became a limited partner purchased software from a subsidiary ("Trafalgar Capital") of the developer of the software in consideration for cash (as to 30% of the purchase price) and a promissory note (for the balance), with the taxpayer then assuming a portion of the promissory note as part consideration for his units in ICON. ICON licensed the program to a Bermuda limited partnership ("ICAP") of which Trafalgar Capital was the general partner.