Self-Employment and Small Business

Business-expense terms for sorting self-employment costs into current, capital, and CCA treatment.

Business-income terms for self-employment, professional income, sole proprietorship, and T2125 reporting.

Business income is self-employment income reported from commercial activity after applying the relevant tax rules and records.

Capital cost allowance is the system for deducting eligible business capital costs over time instead of all at once.

Capital expenses buy or improve longer-term business property and are usually handled through capital-cost rules instead of immediate deduction.

Current expenses are ordinary business costs normally deducted in the year rather than capitalized.

Professional income is self-employment income earned in a profession and reported through the taxpayer's business-filing workflow.

Canadian tax vocabulary for sole proprietors, professional income, business expenses, and T2125 reporting.

A sole proprietorship is a business structure in which the individual and the business are not separate personal income-tax filers.