When is a hobby business considered a business?

Canada (Federal), Canada

The following excerpt is from Miller v. The Queen, 2001 CanLII 593 (TCC):

Where a personal element is involved, the question may arise as to when an activity changes from being a hobby, with no expectation of profit, to a business, with an expectation of profit. The determination is a question of fact. The comment of Bowman J. in Gartry v. The Queen[15] is helpful in determining whether a business has commenced. He stated at page 1949: ... In determining when a business has commenced, it is not realistic to fix the time either at the moment when money starts being earned from the trading or manufacturing operation or the provision of services or, at the other extreme, when the intention to start the business is first formed. Each case turns on its own facts, but where a taxpayer has taken significant and essential steps that are necessary to the carrying on of the business it is fair to conclude that the business has started. ...

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