A partnership is usually the relationship between persons who conduct a business in common with the belief they will make a profit. You can have a partnership without a written agreement.
Therefore, to determine if you are a partner, determine the type and extent of your involvement in the business. See the laws of your province or territory to help you decide if you are a partner in a certain business.
When you form, change, or dissolve a partnership, consider:
* whether the relationship is a partnership;
* the special rules about capital gains or losses and the recapture of capital cost allowance that apply when you give properties to a partnership;
*the special rules that apply when you dissolve a partnership; and
*the special rules that apply when you sell or dispose of your interest in a partnership. Source: Canada Revenue Agency
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