RSM324H1 Chapter Notes - Chapter 5: Capital Asset, Cash Flow, Accrual
Document Summary
A profession, calling, trade, manufacture, undertaking of any kind whatsoever and an adventure or concern in the nature of trade. Usually identifiable by the nature of activity and evidence of their existence ie. location, business name, telephone listing, etc. Does not require to provide evidence of its existence. Acquisition of property for the purpose of reselling it at a profit --> business income even though it is not normal operations of business for the taxpayer. Provide a long-term or enduring benefit --> capital gain/loss --> Acquired for the purpose of reselling at a profit --> business income / income loss --> business income. Degree of risk involved is enhanced if activity may result in capital loss rather than business loss because of deduction restriction on capital losses. 1/2 of capital losses are deductible (only against available capital gains) Losses can be deductible against any source of income.
