Sales Employee Expense Deduction and Existence of a Source of Property Income
Edmond v The Queen, 2011 TCC 142
BRIEF SUMMARY ONLY
Sales Employee Expense Deduction
Taxpayer claimed, inter alia, a deduction for travel expenses from his last appointment to his home pursuant to paragraph 8(1)(f). The Minister denied this portion of the deduction on the basis that this travel segment was personal. The Court referred to the decisions in Toutov v The Queen, 2006 DTC 2928, and Campbell v The Queen, 2003 DTC 420, that held that a taxpayer who works from home (home is a regular place of work) may deduct travel expenses form and to the home done as part of the employment. The deductions were allowed.
Source of Property Income
The taxpayer claimed rental losses which the Minister denied on the basis that there was no source of property income to which the losses related. The taxpayer had purchased an inn and had rented the Inn to a wholly owned corporation. The corporation didn’t have sufficient income to pay the rental amounts to the taxpayer, being the source of the rental loss. The Court referred to the decision of the SCC in Stewart v The Queen,  2 SCR 645, to identify the test of a source of business or property income, and held that this taxpayer was lacking the subjective intention to profit through the rental arrangement.
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