Capital Gains vs Business Income

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Understanding the difference between Capital Gains and Business Income is crucial for every Canadian taxpayer, especially if you deal with investments or operate a business. In this video, we break down these two important concepts, how they impact your taxes, and why the CRA cares about how your income is classified.

Learn about:

a. The tax advantages of capital gains and their inclusion rates for individuals, corporations, and trusts.
b. How capital property differs from inventory, with practical examples.
c. The factors courts use to classify income, such as intention, frequency of transactions, and relationship to your business.
d. We also discuss the changes in inclusion rates and explain why understanding this distinction is vital for optimizing your tax planning strategy.

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Disclaimer:
The contents of this video are provided for general guidance only and are based on information believed to be accurate and complete. However, we cannot guarantee its accuracy or completeness. This video does not provide legal or tax advice, nor should it be relied upon as such. For specific advice tailored to your situation, please consult a qualified tax professional or accountant.

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