Principal Issues: Are cash back incentives that are received by individual home purchasers from a realty business taxable and are the amounts paid by the company deductible?
Position: Question of fact and will depend whether the amounts received by the home purchaser would be considered income from a source.
Reasons: The Act lists the main sources of income, and a number of other miscellaneous sources. These main sources are income from office, employment income, business income, property income and capital gains. The other sources of income are found in subsection 56(1) of the Act. If the income does not fall within one of these sources of income, it is generally not taxable.