Ultimately, whether gambling money is income or not depends largely on whether the taxpayer expected to profit from their gambling activities. Any unexpected earnings are considered windfalls. For the latter, the payer must have had a realistic expectation of profit based on their skills, consistency, and objectives. Gambling earnings can be classified as either a non-taxable windfall or taxable business income. ProfessionalĬalculating one’s income can often be a complicated process, but the classification of winnings earned through gambling the process is relatively straightforward. Call Jeremy Scott Law at (902) 403-7201 to review gambling income with an experienced Canadian tax lawyer. Gambling can be a fun and enjoyable pastime, but gambling responsibly requires familiarity with the financial implications involved.
Such tracking can pose headaches if not managed carefully. Even amateur gamblers, however, are required to keep track of their gains and pay taxes on any interest earned. While professional gamblers are subject to taxes appropriate to their line of business, Canadian citizens who gamble as amateurs benefit from an exemption on income earned through gambling. Taxation on gambling winnings in Canada can be a tricky business.
