Allowable reserves

You can deduct an amount for a reserve, contingent account, or a sinking fund as long as the Income Tax Act allows it and the amount is reasonable.

Enter the allowable reserve amount on line 9270 - Other expenses of Form T2125, Statement of Business or Professional Activities.

Forms and publications

• Guide T4002, Business and Professional Income
• Guide T4037, Capital Gains
• Guide T4011, Preparing Returns for Deceased Persons
• Form T2017, Summary of Reserves on Disposition of Capital Property
• Form T2125, Statement of Business or Professional Activities
• Interpretation Bulletin IT-154, Special reserves
• Interpretation Bulletin IT-442, Bad debts and reserves for doubtful debts

Date modified:

2016-01-05