How do I report income earned from a business I operated?

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.

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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