Sole proprietorships and partnerships
Self-employment income is reported on line 135 to line 143 of your income tax and benefit return. This income may be earned from a business you operate yourself as a sole proprietorship or with someone else as a partnership.
The topics below contain information about:
- line 135, business income
- line 137, professional income
- line 139, commission income
- line 141, farming income
- line 143, fishing income
There is information for sole proprietorships or partnerships involved in unique types of business operations. Go to farmers and fishers, or daycare in your home if your business involves these activities. If your income is from a property, go to rental income. If you sell lottery tickets, go to lottery prize commissions.
If your business is incorporated, go to corporations.
Self-employed Canadians can now register to be eligible to receive Employment Insurance special benefits, which include maternity, parental, sickness and compassionate care benefits. For more information on eligibility and application, go to EI Special Benifits for Self-Employed People.
- What is a business?
Definition of a business and when does it start.
- Business expenses
Common business expenses.
- Report business income and expenses
Calculate and report your business income using form T2125.
- Investment tax credit
Information on the investment tax credit, the apprenticeship job creation tax credit, and the investment tax credit for childcare spaces.
- Partnership Information Return filing requirements
Reporting income, losses, GST/HST rebate, completing the partnership information return, capital cost allowance and eligible capital expenditure.
- Accounting methods
Accrual or cash method.
- Fiscal period
Choosing your fiscal period.
- Business records
Your obligations for keeping records of your business activities.
- Instalment payments
Due dates for filing your returns and making your payments. Establishing a fiscal year-end and calculating instalment payments.
Forms and publications
- Guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income
- Form T2042, Statement of Farming Activities
- Form T2121, Statement of Fishing Activities
- Form T2125, Statement of Business or Professional Activities
- Form RC59, Business Consent for Access by Telephone and Mail
- Video series: Businesses video gallery
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