Business or Professional Income
What is the difference between business and professional income on the T2125?
For me, the main distinguishing factor between business income and professional income is the type of business.
Business income is defined as non-professional
So that begs the question, what is professional income?
If you look at CRA's website and/or guides, when discussing professional income, they will make reference to the following professions:
lawyer (including a notary in Quebec)
While it may not be exclusive to the professions listed above, you will notice that these types of professions usually require licensing to practise the profession.
Often professional income will have a work-in-progess inventory component as well which relates to the services being offered.
Hope that helps Glenda.