Is interest received on investments considered income from a business rather than from a property?
Ontario, Canada
The following excerpt is from Inter-Leasing, Inc. v. Ontario (Revenue), 2013 ONSC 2927 (CanLII):
In general, interest income that is received on investments is considered to constitute income from property rather than income from a business. See Langhammer v. The Queen [2000] T.C.J. No. 828 at para. 33. There are two exceptions to this general principle: (i) where investments constitute an integral part of the taxpayer’s business activities; or (ii) where the activities associated with the generation of interest income are in and of themselves a business.
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