Précis: The taxpayer and his wife converted their personal residence to rental property in 2007 and from rental property to personal residence in 2008. They each claimed a capital loss and a terminal loss in 2008. CRA reduced both losses claimed and the Donaldsons appealed to the Tax Court. The Court struck Mrs. Donaldson’s appeal since her 2008 assessment was a nil assessment. In the case of Mr. Donaldson the Court dismissed his appeal on the basis that CRA’s computations of capital loss and terminal loss were both correct (apart from an understatement of the terminal loss in the amount of $7.99).
Donaldson v. R. - TCC: CRA’s computation of terminal loss on change of use correctREAD MORE »