Bishara – Quebec Court of Appeal reverses the Court of Quebec and finds that the taxpayer realized gains on three condo sales in quick succession on capital account

The taxpayer purchased a condo in April 2008, for him and his girlfriend and two children to live in, sold it a year later to purchase and move into a less cramped condo - but then, due to their separation, purchased in December 2011 a loft for him to live in. He sold both the second and third residences in May 2011.

The Quebec Court of Appeal reversed the trial judge and found that the taxpayer had realized capital gains, stating (after quoting Canada Safeway on secondary intention):

The appellant provided a consistent explanation for his multiple moves that did not include any motivation to make a short-term profit. In contrast to the respondent’s vague and ambiguous allegations, the appellant's explanations have the necessary degree of particularity and likelihood, duly supported by convincing evidence presented at trial.

Neal Armstrong. Summary of Bishara v. Agence du revenu du Québec, 2020 QCCA 854 under s. 9 - Capital Gain vs. Profit - Real Estate.