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.