Personal Finance

business vs professional income

  • Last Updated:
  • Apr 30th, 2007 11:14 am
Jr. Member
Apr 25, 2006
197 posts

business vs professional income

Can anyone tell me the difference between business and professional income? I've been reading CRA's website and I find no useful information.

I did about 3K of I.T. consulting last year, the person who paid me will be declaring this amount, so I decided to be safe to also add it to my income tax file.
1 reply
Deal Fanatic
Feb 1, 2006
9335 posts
You could use either, doesn't really matter much. The main difference is that business has inventory, professional has work-in-progress. You have neither, I imagine, so just pick one or the other.

Don't forget that you can claim expenses if you had any to offset that income. Home office, vehicle, etc.