In DEML Investments Limited v. Canada (Fed CA, 2025) the Federal Court of Appeal allowed in part an appeal, this brought against a dismissed Tax Court appeal, that relating to a denial of "a capital loss claimed by DEML Investments Limited (DEML) on a sale of an interest in a partnership in 2010".
Here the court considers 'Canadian resource properties':
[54] A Canadian resource property is not a capital property. Capital property is defined in section 54 of the Act as a property the disposition of which will give rise to a capital gain or capital loss. The disposition of a Canadian resource property will not give rise to a capital gain or capital loss. Rather, the proceeds of disposition for such property will be deducted in computing the cumulative resource expense for that property. For an oil and gas property (such as the petroleum and natural gas rights that are part of the Resource Properties), the amount by which the proceeds of disposition exceed any related outlays and expenditures and certain other specified deductions, is deducted in computing the CCOGPE of the vendor of that property (F in the definition of CCOGPE in subsection 66.4(5) of the Act).
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