There is a persistent belief that if you make a bit of money on the side, it doesn’t really count.
Selling a few things online.
Consulting occasionally.
Driving for a platform here and there.
Renting out a property a few weekends a year.
“It’s not really a business.”
I’ve even had people ask: *How much do you have to make before you report it on your tax return?*
Often, they’ve heard about the GST/HST registration threshold and assume that if they’re below that number, they don’t need to report the income at all.
That’s incorrect.
Let’s clear this up.
There Is No Income Threshold
The GST/HST small supplier threshold (currently $30,000 in gross revenues over four consecutive calendar quarters) determines whether you must register for and collect GST/HST.
It does **not** determine whether you must report income.
Income is reportable from dollar one.
There is no “don’t worry about it” threshold for income tax.
“But I Don’t Have a Business”
Many people are convinced their activity can’t possibly be business income because:
• They don’t have a licence.
• They didn’t register a business name.
• They only did it a few times.
• They barely made anything.
• They didn’t mean for it to be serious.
None of that determines whether it’s a business.
The Income Tax Act looks at the **nature of the activity**, not your branding decisions.
If you engage in an activity with the expectation of coming out ahead — in other words, to make a profit — you have business income.
Call it what you like. If you’re trying to make money, it’s business income.
“But I Didn’t Make Any Money”
It is entirely possible that your side activity produces no net income after expenses.
But you don’t get to assume that.
You have to calculate it.
Without proper reporting, you don’t actually know whether you had:
• A small profit
• A small loss
• A larger loss
• Or taxable income you’re ignoring
And that matters.
Can You Claim a Loss?
You can run a business at a loss.
Losses can be deducted against other income — if there is a reasonable expectation of profit.
If the activity looks like a hobby with occasional sales, CRA may deny the loss.
But denying a loss does not mean the income disappears.
If you earn money, that income is still taxable.
If there is profit, it is taxable.
If there is a loss, it must be supportable.
Digital Platforms Are Reporting to CRA
As of January 1, 2024, certain digital platforms are required to provide seller information and gross payment data to the Canada Revenue Agency.
You may not receive a summary slip.
But CRA will have the information.
Matching programs may not run immediately. By the time a review occurs, records may be harder to reconstruct.
“It was only a few hundred dollars” is not a defence.
The Real Risk Isn’t Just the Income — It’s the Expense Test
For an expense to be deductible, it must:
1. Be incurred for the purpose of earning income.
2. Be reasonable in the circumstances.
A receipt proves you paid for something.
It does not prove it was a business expense.
If asked how an expense helped you earn income, you need a clear answer.
The Bottom Line
If you are engaging in an activity with the intention of making money, you are carrying on a business for tax purposes.
Income is reportable from dollar one.
Proper reporting allows legitimate deductions and protects you if questions arise later.
Integrity is not situational.
If you are trying to make money, reporting that income is part of the deal.
BZMind 
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