Do I have to report my income from hobby sales?
Allan Madan, CA
According to the Canada Revenue Agency (CRA), hobby income must be reported on your tax return if it generates a profit (revenue in excess of expenses). In the eyes of the CRA, this is a strong indication that the hobby is a venture with an expectation of profit.
If, however, the hobby results in a loss (expenses in excess of revenue), you will not be able to claim hobby losses against personal income. In this case, the CRA has deemed that the reasonable expectation of profit does not exist.
Disclaimer
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.
ABOUT THE AUTHOR
ALLAN MADAN
CA.CPA.CGA
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
.png)
SOCIAL CONNECT