Definition
Gig economy income encompasses all income earned through apps and digital platforms outside of a traditional employment relationship.
**Tax treatment**: - Income reported on T2125 (Statement of Business or Professional Activities) - Received as T4A issued by the platform (if >$500) - Applicable business deductions (vehicle expenses for Uber, accommodation expenses for Airbnb, etc.) - Qualifying income = net income after deductions (not gross)
**Lender criteria**: - Generally 2 years of continuous history as a platform worker required - Qualifying income = average of last 2 years of net income (line 23600 of T1) - If upward trend: some lenders accept weighted average or most recent year - Risk: aggressive tax deductions reduce declared income and therefore borrowing capacity
**Strategy**: A platform worker planning to purchase a property should ideally maximize their declared net income (reduce deductions) for 1-2 years before application — in consultation with an accountant.