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Which of the following would be considered by the CRA to be business income rather than property income or capital gains?

A) Rental income from a property
B) Capital gains from the sale of stocks
C) Income generated from business operations
D) Interest income from a savings account

User Hexabunny
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1 Answer

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Final answer:

Income generated from business operations is considered business income by the CRA, unlike rental income, capital gains from stock sales, and interest income from a savings account, which are classified as property income and capital gains. he options provided is C) Income generated from business operations.

Step-by-step explanation:

The Canada Revenue Agency (CRA) categorizes income into different types, such as business income, property income, and capital gains. The type of income that would be considered by the CRA to be business income rather than property income or capital gains from the options provided is C) Income generated from business operations.

This type of income is associated with the active conduct of a trade or business and includes earnings from providing services or selling goods. It is distinct from passive income, such as rental income from a property, which would be classified as property income. Similarly, capital gains from the sale of stocks and interest income from a savings account are not considered business income; these would be categorized as capital gains and property income respectively.

User Ryaner
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