Part 3C – Gross business or professional income
Line 8000 – Adjusted gross sales or adjusted professional fees
If you are completing Form T2125 for a business activity, enter at line 8000 your adjusted gross sales from amount 3G in Part 3A.
For a professional activity, enter your adjusted professional fees from amount 3O in Part 3B.
Line 8290 – Reserves deducted last year
Include any reserves you deducted for 2019. For more information, go to Allowable reserves.
Line 8230 – Other income
On line 8230, enter the total income you received from other sources. Some examples of other income are:
- a recovered amount you wrote off as a bad debt in a previous year
- the value of prizes or vacation trips awarded to you because of your business or professional activities
- payments you received for land you leased for petroleum or natural gas exploration. For more information, go to Interpretation Bulletin IT-200, Surface rentals and farming operations.
- grants, subsidies, incentives, or assistance you get from a government, government agency, or non-government agency. Input tax credits are considered government assistance. Include the amount you claimed on line 108 of your GST/HST return only if you cannot apply the rebate, grant, or assistance you received to reduce a particular expense or an asset's capital cost. For more information, go to Grants, subsidies, and rebates.
If you use the quick method to calculate your GST/HST remittances, report the 1% credit (maximum $300) that you claimed on line 108 of your GST/HST return (or on line 107 if you filed on paper). For more information, go to Interpretation Bulletin IT-273R2, Government Assistance – General Comments.
Enter on line 9974 in Part 5, the amount of GST/HST rebate for partners you received in the year that relates to eligible capital expenses other than CCA. For more information, go to Line 9974 – GST/HST rebate for partners received in the year.
Do not include in income any other rebate, grant, or assistance you receive. Subtract that amount from the proper expense or the cost of capital property it relates to. If the rebate, grant, or assistance is for a depreciable asset, subtract the amount you received from the asset's capital cost. This will affect the amount of CCA you can claim for that asset. If the asset qualifies for the investment tax credit, this reduction to the capital cost will also affect your claim for the investment tax credit. For more information, go to Form T2038(IND), Investment Tax Credit (Individuals).
The amount at line 8299 is your gross business or professional income. This amount is your adjusted gross sales or adjusted professional fees at line 8000, plus any reserves deducted last year at line 8290, plus any other income at line 8230.
Enter the amount at line 8299 on your form. If it is business income, enter this amount on your tax return on line 13499Footnote 1. If it is professional income, enter this amount on your tax return on line 13699Footnote 2.
If you determine that you are self employed, report your daycare income as business income on your tax return. Enter your gross daycare income on line 13499 and your net income or loss on line 13500. If you are filing your return online, use the industry code for daycare that your tax preparation software uses.
Your gross income includes all the income you earned from daycare services you provided during the year. This income includes payments from parents, as well as subsidies such as provincial or territorial grants to care for children.
If you received a grant to buy a daycare property, that amount is not part of your income. Instead, subtract the grant you used to buy the property from the capital cost of the property.
Keep track of how much of your business income was commission income. Enter your gross commission income on line 13899Footnote 3 of your income tax return.
Generally, you have to register for the GST/HST if you provide taxable supplies in Canada and your total revenues from worldwide taxable supplies (before expenses) from all your businesses and those of your associates are more than $30,000 over the last four consecutive calendar quarters or in any single calendar quarter.
Forms and publications
- Guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income
- Guide T4011, Preparing Returns for Deceased Persons
- Guide T4037, Capital Gains
- Form T2125, Statement of Business or Professional Activities
- Interpretation Bulletin IT-154R, Special Reserves
- Interpretation Bulletin IT-442R, Bad Debts and Reserves for Doubtful Debts
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