[Verse 1] When you're earning from your trade or craft each day That's business income coming your way But if you're just collecting rent or dividends so sweet That's property income, passive and neat The line between them matters for your tax So learn the rules and get your story straight on facts [Chorus] Business flows from active work you do Property income comes to you Canderel teaches profit must be true Reasonable expenses, section sixty-seven too Eighteen limits what you can deduct Twenty gives you capital cost luck [Verse 2] Canderel case from ninety-eight Supreme Court said Profit calculation principles to keep in your head Generally accepted accounting rules apply But tax law can override, so don't rely On GAAP alone to guide your way Match your methods with what the tax rules say [Chorus] Business flows from active work you do Property income comes to you Canderel teaches profit must be true Reasonable expenses, section sixty-seven too Eighteen limits what you can deduct Twenty gives you capital cost luck [Bridge] Home office needs to meet the test Personal use won't pass, business is best Vehicle logs will save the day Track your kilometers, business versus play Inventory lower of cost or market price Choose your method, FIFO's nice [Verse 3] Rental income calculation's quite a ride Gross rents minus expenses is your guide Repairs are current, improvements capital Reasonableness test is always critical If personal use is mixed within Only business portion lets you win [Chorus] Business flows from active work you do Property income comes to you Canderel teaches profit must be true Reasonable expenses, section sixty-seven too Eighteen limits what you can deduct Twenty gives you capital cost luck [Outro] Subdivision B will guide you through Business property income, now you know what to do
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