UNDERSTANDING EXPENSE DEDUCTIONS
BUSINESS OR HOBBY?
For entrepreneurs, including independent sale contractors (“ISCs”) in the Direct Selling industry, understanding the rules around business expense deductibility is essential. This area remains a focus for the Canada Revenue Agency (the “CRA”), as highlighted in a recent Tax Court of Canada decision in Boles v. The King (2024 TCC 167) (“Boles”). The case offers a helpful reminder of how courts determine whether an activity is a business, and whether related expenses are deductible from income.
Tagged in:
Boles v. The King
Business Expense Deductibility
Canada Revenue Agency
Independent Sale Contractors
Tax Court
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