Acco340Lecture 5 - Business Income

Acco340Lecture 5 - Business Income -...

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                            INCOME OR LOSS FROM A BUSINESS-Chapter 6    IGNORE  detailed calculations on page 246 -247    General  Business income, property income and capital gains generally involve the use of property. The  specific use of property  determines the classification and taxation of the resulting  income.                                                            SUMMARY Use of Property                     Income while Held                     Income at disposition   1. Used in Business       -Depreciable                      -Business income            -Capital gain only; Capital gain                                                                                           and Recapture; or Terminal  loss                                                                                            (Note: no capital loss allowed)        -Non-Depreciable              -Business income           - Capital gain or Loss only 2. Acquired as Investment          -Depreciable                     -Property income             -Capital gain only; Capital gain                                                                                           and Recapture; or Terminal  loss                                                                                             (Note: no capital loss  allowed)          -Non-Depreciable             - Property income            - Capital gain or Loss only 3. Acquired for Resale           -Generally none                 -Business income (loss )   4. Acquired for Personal Use   -none                            -Capital gain (in general,  losses                                                                                            are not deductible)                                       1. BUSINESS ACTIVITY ITA 248(1) Definition:    Business includes   a profession, calling, trade, manufacture or  undertaking of any kind whatever   and, an adventure or concern in the nature of trade,  but does not include an office or employment ”.
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Note : a self-employed independent contractor earns business income, not employment income
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This note was uploaded on 01/24/2011 for the course ACCO 330 taught by Professor Mastromonaco during the Fall '10 term at Concordia Canada.

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Acco340Lecture 5 - Business Income -...

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