How do I report income earned from a business I operated?
Allan Madan, CA
Question:
I am a full-time employee of ABC Corporation, but I also earned some income from a separate business I operated this year. How do I report this income? (My business is a sole proprietorship).
Answer:
As you would include your employment income on your personal tax return, you will also need to do so for all other source of income. For each business, you must complete a separate Form T2125 with your personal income tax return for the year.
In this form, you may also deduct related expenses that were paid to generate that business income. Such expenses include advertising expense, meals & entertainment, insurance, interest, office expenses, supplies, rent, maintenance and repairs, travel expenses and etc.
Disclaimer
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.
ABOUT THE AUTHOR
ALLAN MADAN
CA.CPA.CGA
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
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