SUBJECT – Revenue vs Capital Gain
Hi I'm Barbara Keating, Accountant and small business specialist at MWL Financial Group.
The concept of the difference between revenue and capital gains often causes confusion especially when it comes to asset and property transactions. Normally one would expect a property transaction to be a capital gain event –not necessarily so.
If you are treating property or high value items like a green grocer buys and sells apples then those sorts of transactions would be considered revenue in nature and taxed as revenue rather than under the capital gains tax legislation.
Clearly because of the exemptions allowed under the tax act in relation to capital gains tax having a transaction classified as a capital gain is more advantageous from a taxation point of view but the underlying intention may have it treated otherwise.
For more information contact us at email@example.com and either me, Barbara Keating or one of our experts will be more than happy to help.