Business Income Fundamentals (Sections 9-37)

Canadian Tax Fundamentals · 3:44

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Lyrics

[Verse 1]
When a business earns its daily bread
Income flows from trade we've led
Active management shows the way
Operations running every day
Revenue minus costs we face
Profit margins find their place

[Chorus]
Business income, active trade
Property income, passive grade
Inclusions come, deductions go
Calculate the profit flow
Sections nine through thirty-seven
Business fundamentals, accounting heaven

[Verse 2]
Property income sits and waits
Rental yields and interest rates
Passive sources, minimal care
Investment returns hanging there
While business income takes the stage
With effort earning every wage

[Chorus]
Business income, active trade
Property income, passive grade
Inclusions come, deductions go
Calculate the profit flow
Sections nine through thirty-seven
Business fundamentals, accounting heaven

[Verse 3]
Include all revenue you receive
Sales and services that you achieve
Reasonable expectations test
Earned or receivable at best
Barter transactions count as well
Market value stories tell

[Bridge]
Deduct expenses reasonably incurred
Current or capital, choose the right word
Business purpose must be clear
Personal costs don't belong here
Reasonable amount the law demands
Profit calculation in your hands

[Verse 4]
Timing matters, when to count
Accrual basis, full amount
Cash received or right to claim
Income recognition plays the game
Matching principle applies
Expenses paired where revenue lies

[Chorus]
Business income, active trade
Property income, passive grade
Inclusions come, deductions go
Calculate the profit flow
Sections nine through thirty-seven
Business fundamentals, accounting heaven

[Outro]
From sections nine to thirty-seven
Business income, clear as heaven
Active trade or passive hold
Profit stories being told

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