O’Connor
T.C.J.:
The
appellant
refers
to
his
unemployment
for
a
period
of
fourteen
months,
during
which
period
he
had
a
full-time
job
trying
to
find
a
job.
He
also
refers
to
his
attendances
at
night
school
for
two
or
three
nights
a
week
during
the
period
in
question.
These
factors,
the
appellant
argues,
did
at
least
two
things.
One,
he
became
reliant
on
the
rental
income;
and,
two,
he
could
not
afford
the
cash
or
the
time
to
renovate
certain
units
in
the
house
for
renting
to
other
persons,
thus
affecting
the
overall
rental
income.
The
appellant
also
points
out
to
his
anticipated,
although
small,
profits
from
the
rental
operation
in
1997
and
1998.
One
must
ask
whether
all
of
these
factors
considered
together
are
sufficient
to
lead
to
the
conclusion
that
in
the
years
in
question
there
was
a
reasonable
expectation
of
profit.
Counsel
for
the
Minister
points
to
the
continued
rental
losses
from
1991
through
1996
and
the
fact
that
during
the
years
under
appeal
the
rents
were
never
sufficient
to
meet
the
fixed
costs
of
interest
and
taxes.
And,
further,
counsel
points
to
the
personal
elements
involved,
namely,
the
property
was
the
principal
residence
of
the
appellant
and
that
the
tenant
was
a
friend
and
partner
of
the
appellant.
I
am
bound
by
decisions
of
the
Federal
Court
of
Appeal.
Considering
the
analyses
of
that
court
in
the
recent
cases
of
Tonn
v.
R.
(1995),
96
D.T.C.
6001
(Fed.
C.A.)
and
Mohammad
v.
R.,
June
11,
1997
[Reported
(1997),
97
D.T.C.
5503
(Fed.
C.A.)],
in
applying
those
analyses
to
the
facts
in
these
appeals
I
am
unable
to
conclude,
notwithstanding
the
appellant’s
submissions,
that
a
reasonable
expectation
or
profit
existed
in
the
years
in
question.
The
personal
elements
involved,
the
continued
losses
and
the
inability
for
the
rents
to
meet
the
fixed
costs
are
truly
overwhelming
factors
against
the
appellant.
And
I
say
this,
notwithstanding
my
personal
concern
for
the
appellant’s
position.
In
conclusion,
in
my
opinion
there
was
no
reasonable
expectation
of
profit
in
the
years
in
question
and
consequently
the
appeals
must
be
dismissed
for
that
reason.
Appeal
dismissed.
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