Johnstone v. The Queen, 88 DTC 6032, [1988] 1 CTC 48 (FCTD)

An agreement for the sale of a strata unit was not concluded until 1981 and its disposition accordingly did not occur in 1980. Moreover, even if the agreement had been concluded in 1980 "it would not have met the criteria of a statutory 'disposition' for too much remained yet to be accomplished before the ultimate or final transaction or event entitling the plaintiff to the proceeds would or could occur." [C.R.: 66.2(5)(b)]

The taxpayer bought a large house with the intention of tearing it down and selling a half interest in the property in order to finance the construction of his principal residence on the other half. The gain from the sale of a strata-title unit on the first half accordingly was taxable.