Business Income versus Property Income
When a taxpayer purchases and holds property to explicitly earn income, the income is reported as either income or loss from a business or property. Alternatively, when a taxpayer disposes of such property, the proceeds minus the cost will either be a capital gain or loss; or income or loss from a business or property. There are two clear transactions that occur: the income or loss produced from the ownership of the property (business income) and the income or loss produced from the disposition of the property (property income). For more information, please consult ITA: 248 (1).
Author: Natalie Leung