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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
^
26% - Moderately

Self Employed Person


Synonyms:business owner, free agent, freelance, subcontractor, your own boss
Acronyms &
abbreviations:
SEP
Filed Under: financial-banking, mortgages, taxation
Tags: business, employment
 

Definition of self employed person (SEP)

self employed person (SEP)
1. An individual who owns and operates a trade or business rather than working as an employee for company. You are self-employed if you are a sole proprietor or a partner working in a business. You can be an employee and self-employed at the same time if you have an independent business outside of your regular employee hours. To qualify for many business tax exclusions and deductions, the business must make a profit in three of five years. In most cases, to qualify you must take and average of the last two - three years tax assessments.

Related Terms and Acronyms:

  • business interest expense   Interest acquired in business operations can be deducted as a business expense.
  • commercial loan   A loan taken out by a business.
  • commercial mortgage   A mortgage for commercial property.
  • lease (lse)   A written agreement in which the property owner allows a tenant to use property in exchange for rent, and for a specified period. Or, a written agreement in which a car dealer allows a consumer to use a vehicle in exchange for payments for a specified period.
  • loan   Letting another party use something of value temporarily.
  • low-documentation loan   A mortgage that requires less income or asset verification than conventional loans. Low-documentation loans are designed for the entrepreneur or self-employed, for recent immigrants, or for borrowers who cannot or choose not to reveal their financial information. A substantial down payment and excellent credit history are generally required. This type of loan will also yield a higher interest rate.
  • meals and entertainment (M&E)   Deductible expenses in your business such as the cost of taking a client to a restaurant (meals) or a sporting event (entertainment). However, these expenses are only partially deductible (50 % in Canada).
  • mortgage (mtg)   A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
  • proprietor   The owner of a business or property.
  • sole proprietorship   A business owned by an individual where no legal distinction is made between the business and the owner.

More Related Terms and Acronyms

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