ACC 522 Chapter Notes - Chapter 5: Canada Pension Plan, Phosphoribosyl Pyrophosphate, Capital Cost Allowance
Document Summary
Acc 522 chapter 5 notes: income from business. Can be earned by all three of the taxable entities individuals, corporations, and trusts. Business a profession, calling, trade, manufacture, or undertaking of any kind whatsoever and an adventure or concern in the nature of trade: should be carried on with a reasonable expectation of profit . Enterprises usually maintain identifiable evidence of their existence a location, a business name, a special telephone listing, and so on. Property, with ability to provide long-term benefit, may be considered business or capital in nature. Depending on the reason for acquisition & use: the gain or loss on the sale can be either: a business activity or a capital transaction. Distinction between the two sources is important: capital transaction have preferential treatment, business income fully taxable, business losses can offset other income. The intended use of a property on acquisition is the principal factor in deciding its tax treatment on a subsequent sale.
