Beaubier,
T.C.C.J.:—This
is
an
appeal
pursuant
to
the
informal
procedure
of
this
Court.
It
was
heard
in
Edmonton,
Alberta
on
August
11,
1993.
The
appellant
was
the
only
witness.
The
appellant
is
a
Professor
of
Meteorology
at
the
University
of
Alberta
and,
so
far
as
is
in
evidence,
was
so
occupied
at
all
times
material
to
this
case.
He
has
appealed
a
reassessment
of
his
1990
income
which
disallowed
a
deduction
of
repairs
and
maintenance
expenses
of
$8,637.22
which
the
appellant
incurred
in
respect
to
his
principal
residence
that
year.
The
appellant
purchased
his
residence,
in
his
words,
“in
the
spring
of
1977”.
He
has
resided
in
it
since
that
date
except
during
his
sabbaticals
when
he
rented
it
in
a
partly
furnished
condition.
This
happened
for
the
following
periods:
(1)
August
1,
1977
to
July
31,
1978
(2)
January
1,
1982
to
December
31,
1982
and
(3)
August
1,
1989
to
July
31,
1990.
The
expenses
claimed
occurred
immediately
after
July
31,
1990.
The
appellant's
1990
rental
income
was
$4,900.
The
appellant
anticipates
that
he
will
receive
two
more
one-year
sabbaticals
within
the
next
decade,
at
which
times
he
will
rent
his
residence.
There
is
no
record
of
any
previous
expenses
deducted
by
the
appellant
respecting
these
rentals.
However,
the
appellant
states
that
the
expenditure
resulted,
at
least
in
part,
from
worse
wear
and
tear
by
the
1990
tenant
than
his
family
would
have
caused,
and
in
part
from
tenant
usage
over
the
years.
The
Court
accepts
this
as
true
and
finds
that
some
of
the
wear
and
tear
repaired
was
caused
by
the
appellant
and
his
family.
The
Court
also
finds
that
the
appellant
has
established
a
pattern
of
renting
his
residence
for
profit
and
does
rent
it
to
gain
income
from
the
property.
It
is
reasonable
to
expect
that
he
would
profit
from
these
rentals.
Paragraph
18(1)(a)
of
the
Income
Tax
Act,
R.S.C.
1952,
c.
148
(am.
S.C.
1970-71-72,
c.
63)
(the"Act")
states:
(1)
In
computing
the
income
of
a
taxpayer
from
a
business
or
property
no
deduction
shall
be
made
in
respect
of
(a)
.
.
.
an
outlay
or
expense
except
to
the
extent
that
it
was
made
or
incurred
by
the
taxpayer
for
the
purpose
of
gaining
or
producing
income
from
the
business
or
property.
.
.
.
In
1990
the
appellant
earned
rental
income.
In
1990
he
expended
funds
to
repair
and
maintain
the
property
rented.
The
Court
finds
these
expenditures
were
partly
to
repair
tenant
wear
and
tear
and
partly
to
repair
his
family’s
wear
and
tear.
The
purpose
of
the
expenditures
were
partly
for
his
family’s
comfort
and
partly
to
rent
the
property
in
the
future.
The
Court
notes
that
current
economic
circumstances
in
Canada,
combined
with
changing
worldwide
working
conditions
have
caused
many
workers
in
Canada
to
be
in
similar
circumstances
to
the
appellant.
Some,
such
as
the
appellant,
must
constantly
upgrade
their
training
or
experience.
Others,
such
as
workers
in
the
oil
or
mining
industry
or
in
external
affairs,
must
go
abroad
to
earn
a
living.
They
want
to
keep
their
homes.
The
only
way
they
can
afford
to
do
this
is
to
rent
their
homes
for
profit.
Each
such
case
must
stand
on
its
own
merits
and
facts.
However,
where
the
property
is
rented
for
profit,
associated
expenses
appear
to
the
Court
to
be
deductible
pursuant
to
the
Income
Tax
Act.
On
December
31,
1990
(the
appellant's
taxation
year
end),
the
appellant
had
owned
his
residence
for
approximately
13.5
years.
He
had
rented
it
for
profit
for
three
of
those
years.
The
Court
finds
that
he
is
entitled
to
deduct
3/13.5
x
$8,637.22
in
1990
as
rental
expenses.
This
matter
is
referred
to
the
Minister
of
National
Revenue
for
reconsideration
and
reassessment
in
accordance
with
these
reasons.
Appeal
allowed
in
part.
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