In this decision, Justice Miller applies the test from the Supreme Court of Canada’s decision in Stewart to conclude that even though this taxpayer incurred losses of $26,540 and $37,866 in 2011 and 2012, with absolutely no revenue in 2011 and only $7500 from a single source in 2012, the taxpayer was carrying on a business and entitled to claim the business losses against other sources of income.
Mr. Berger was a sports reporter with a radio program for over 20 years when his employer let him go in 2011. He started a blog with the hope of creating enough traffic to attract sponsors to his site.
Taxpayer’s training
[25] This is not the case of a hockey fan believing he could be a sportswriter. This is the case of a professional sportswriter believing he could be a businessman.
Capability of venture to show a profit
… It leaves me to guess whether a steady readership in the few thousands is sufficient to attract sponsors to cover expenses of $30,000‑$40,000 a year.
[32] I conclude the lack of evidence on this aspect, while not helpful to Mr. Berger, is also not fatal. … As I hope I have made clear to Mr. Berger, my view is limited to the short term start-up phase of his venture.