Canadian Tax Quiz Question 1

Correct!

Yes, as you know, to be considered a business in Canada, you must have a reasonable expectation of profit or "REOP".

This is the test the Canada Revenue Agency uses to separate the wheat from the chaff, or in this case, the hobby from the business, or the employee from the self-employed. To learn more about the difference between being an employee and being self-employed, as the Canada Revenue Agency sees it, see Are You an Independent Contractor or an Employee?