We had registered a promissory note for a property we had done a bunch of work and repairs on. We have since been paid the promissory amount do I have to claim on taxes?

Forum|Forum|3 months ago
March 29, 2026
1 reply
5 views

No interest was paid, just principal amount owed.

user17713445337

Level 6

Generally, the repayment of the principal amount on a promissory note is not considered taxable income because it is simply the return of money you loaned or the payment for work/repairs you previously performed. However, because the promissory note was for repairs done on a property, the tax treatment depends on how you reported the original work. But it depends on many factors. different scenarios and eligibility. Receiving the principal of a loan is generally not taxable, but if that "loan" was actually payment for your work, the CRA sees it differently.

Tax laws are complex and depend on specific circumstances. It is recommended to consult a tax professional or the Canada Revenue Agency (CRA) to confirm your specific situation.

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