: Do I only have to pay income tax on capital gains? In regards to a money lending business - if I lend a person 0 in exchange for (+100), do I pay income tax on 0 or ? I live in Ontario, Canada.

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On the revenue only. This amount of 10$ will be considered as interest and fully taxable. It will not be a capital gain.

But why would you decide to declare it as an income? 100$ is insignificant. If you lend small amount to friends it cannot be considered a lending business.