Tournier – Tax Court of Canada finds that file storage fees incurred after business cessation were deductible

A retired member of Nova Scotia bar was permitted to deduct $1200 of annual storage fees for client files notwithstanding that her practice had ceased two years’ previously. After noting that retention of the client files was professionally recommended, Bocock J stated that deductibility was “consistent with the notion of unavoidable expenses necessarily expended in future years referable to previous income contemplated in … Poulin, Raegele and Langille.”

Neal Armstrong. Summary of Tournier v. The Queen, 2018 TCC 229 (Informal Procedure) under s. 18(1)(a) - start-up and liquidation costs.