2016-12-01 00:00:00TaxesEnglishFind out what Form T2125 is, what it's used to report and who needs to submit this form to the Canada Revenue Agency.https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/03/Self-Employed-Consultant-Fills-Out-Her-Professional-Income-On-Form-T2125.jpghttps://quickbooks.intuit.com/ca/resources/taxes/what-is-a-t2125/What Is a T2125?

What Is a T2125?

0 min read

Form T2125, Statement of Business or Professional Activities, is a tax form that small business owners and self-employed professionals use to report their income and expenses to the Canada Revenue Agency. Sections on Form T2125 include income, expenses, net income (loss), vehicle expenses and details of equity.

The income section on Form T2125 is separated into business income and professional income. Business income is income that you make from selling the products and services of your business. Sales and commissions are business income; professional income is income that you make from providing professional services. For example, if you’re a lawyer, the fees you received for your legal service are professional income.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Related Articles

Understanding Canadian Self-Employment Tax Forms

Self-employment has some exciting benefits, including a flexible schedule and the freedom…

Read more

Inventory and Income Taxes: A Guide to Reporting Inventory on Your Return

As a small business owner, you need to file a tax return…

Read more

Why Your US-Based Contractors Need 1099 Forms, and How to Ensure They Get Them

When your Canadian business works with American-based freelancers or contractors, you typically…

Read more