Brule,
T.CJ.:
—
Schedule
to
Judgment
In
giving
an
oral
judgment
the
Court
held
that
the
capital
gain
on
the
rented
portion
of
the
appellant's
property
should
be
calculated
from
the
date
when
a
portion
of
the
property
became
a
rental
unit.
This
was
late
in
1980.
For
purposes
of
ascertaining
a
capital
gain
it
is
assumed
to
be
November
1,
1980.
The
property
was
purchased
on
April
30,
1979
and
sold
on
August
31,
1984.
While
these
dates
are
approximate,
in
the
interest
of
expediency
and
in
order
to
avoid
a
subsequent
hearing
with
possible
expert
testimony
to
verify
values
at
the
date
the
property
was
rented,
and
because
such
would
cause
an
expense
probably
exceeding
the
net
result
from
the
reassessment
involved
the
Court
suggested
the
gain
be
calculated
on
a
straight-line
basis.
As
set
out
in
the
reply
to
notice
of
appeal
the
total
gain
was
$52,022.
Until
November
1,1980,
a
period
of
18
months
from
purchase,
the
gain
was
totally
attributed
to
the
appellant
as
being
such
from
a
principal
residence
and
tax-
free.
During
the
64
months,
until
August
31,
1984,
in
which
the
property
was
$52
022
|
held
the
monthly
gain
was
|
—
|
$812.84
per
month.
|
For
the
initial
18
month
period
this
amounts
to
$14,631.
For
the
remaining
46
months
the
exempt
gain
to
the
appellant,
being
on
2/3
of
the
property
amounts
to
2/3
xX
46
x
$812.84
=
$24,927.
The
total
exempt
gain
to
the
appellant
is
therefore
$14,631
+
$24,927
or
$39,558.
The
gain
on
the
rental
property
is
$52,022
-
$39,558
or
$12,464.
The
taxable
capital
gain
to
the
appellant
is
thus
$6,232.
The
appeal
is
allowed
and
referred
back
to
the
Minister
for
reconsideration
and
reassessment
on
the
basis
that
the
taxable
capital
gain
to
the
appellant
is
reduced
to
$6,232.
Appeal
allowed.
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