The appellant appealed the Minister's assessment characterizing the proceeds from the disposition of two properties as income rather than capital gains.
The Tax Court of Canada allowed the appeal, finding that the properties were originally acquired as capital properties and held as such until September 16, 2011, when they underwent a change in use to inventory upon the approval of bank financing for a condominium development project.
The Court determined the intention at the time of the original purchases by the appellant's predecessors, rather than at the time of a subsequent subsection 85(1) rollover, and concluded there was no secondary intention to sell for profit at acquisition.
