Précis: The taxpayer had a number of business interests including vessels and marine permits which he held personally. In 2008 he leased one vessel and offset the rental income with a large capital cost allowance claim which resulted in a loss for tax purposes. In 2010 he sold one of his permits and against claimed capital cost allowance against the sale proceeds. CRA limited his capital cost allowance pursuant to Regulation 1100(15) to the amount of his rental income. The taxpayer argued that he was engaged in a vessel leasing business in both taxation years with the result that Regulation 1100(15) did not operated to limit his capital cost allowance claims in either year. The Tax Court found that the taxpayer was not engaged in a vessel leasing business in either taxation year and dismissed the appeal with costs.
Thibeault v. R. - TCC: Taxpayer not engaged in a vessel leasing business in 2008 and 2010READ MORE »