The respondents sold a plot of land containing apartment buildings for $5,850,000, allocating $5,100,000 to the land and $750,000 to the buildings and equipment.
The Minister of National Revenue reassessed the allocation under section 68 of the Income Tax Act, adding recaptured capital cost allowances to the respondents' incomes.
The Supreme Court of Canada held that section 68 does not apply to a transaction involving only the disposition of property, as it requires the disposition of property and 'something else' other than property.
The appeal was dismissed, and the parties' original allocation was upheld.
