Tax Tip Thursday

Last quiz for this month!

Let’s see how you do.

“What causes more family fights:

inheritance money…
or inherited cottages?”
Answer:
Very often… cottages.
Because cottages combine:
• emotion,
• memories,
• unequal usage,
• maintenance costs,
• inheritance expectations,
• and shared ownership disputes.
One sibling wants to keep it.
Another wants to sell.
Another can’t afford upkeep.
These situations can become extremely emotional.

“If you sell homemade crafts online once a month…
are you officially a business?”

Answer:
Potentially yes.
CRA looks at whether there is a reasonable expectation of profit.
Even small side hustles can create taxable business income.
Frequency alone is not the deciding factor.
If you’re earning income intentionally, CRA usually expects it to be reported.

“If someone pays you cash and there’s no receipt…
does CRA still expect you to report it?”

Answer:
Absolutely yes.
Cash income is still taxable income.
CRA does not care whether payment was:
• cash,
• e-transfer,
• cheque,
• crypto,
• or maple syrup.
Income is income.

“What’s the weirdest side hustle Canadians probably forget is taxable?”

Answer:
There are MANY.
Commonly forgotten ones include:
• snowplowing,
• Airbnb rentals,
• Facebook Marketplace flipping,
• YouTube ad revenue,
• TikTok sponsorships,
• hunting/fishing guide income,
• crypto trading,
• online gaming revenue,
• OnlyFans,
• and even hobby activities that become profitable.
If money is coming in regularly, CRA probably wants to know about it.

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Disclaimer:

This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal or tax advice nor can it or should it be relied upon. All tax situations are specific to each individual. If you have specific tax questions you should book an appointment for a 1 on 1 consultation.