Part 3 - Gross business or professional income

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Part 3 - Gross business or professional income

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Line 8000 - Adjusted gross sales or adjusted professional fees

If you are completing Form T2125, Statement of Business or Professional Activities, for a business activity, enter your adjusted gross sales from line 7, adjusted gross sales, in Part 1.

If you are completing Form T2125 for a professional activity, enter your adjusted professional fees from line 15, adjusted professional fees, in Part 2.

Line 8290 - Reserves deducted last year

Include any reserves you deducted for the previous period. For more information, go to Allowable reserves.

Line 8230 - Other income

Enter the total income you received from other sources. Some examples of other income you would report on this line are:

  • a recovery of an amount you wrote off as a bad debt in a previous year;
  • the value of vacation trips or other prizes awarded to you because of your business or professional activities;
  • payments for land you leased for petroleum or natural gas exploration; and
  • grants, subsidies, incentives, or assistance you get from a government, government agency, or non-government agency. Since input tax credits are considered government assistance, include on this line the amount you claimed on line 108 of your GST/HST return only if you cannot apply the rebate, grant, or assistance you received to reduce a particular expense or an asset's capital cost. For more information, go to Grants, subsidies, or other incentives or inducements.

If you used the quick method to calculate your GST/HST remittances, report the 1% credit (maximum $300) that you claimed on line 107 of your GST/HST return. For more information, see Interpretation Bulletin IT-273, Government Assistance - General Comments.

Note

Report the amount received in the year for the GST/HST rebate for partners that relates to eligible expenses other than CCA on line 9974 in Part 6 of Form T2125. For more information, go to Line 9974 - GST/HST rebate for partners received in the year.

Also, do not include in income any other rebate, grant, or assistance you receive, but subtract that amount from the applicable expense or the cost of capital property it relates to. If the rebate, grant, or assistance is for a depreciable asset, subtract the amount you received from the asset’s capital cost. This will affect the amount of CCA you can claim for that asset. For information about CCA, see Claiming capital allowance (CCA). If the asset qualifies for the investment tax credit, this reduction to the capital cost will also affect your claim for the investment tax credit. For more information, see Form T2038 (IND), Investment Tax Credit (Individuals).

Line 8299 - Gross business or professional income

Enter your gross business or professional income. This is your adjusted gross sales or adjusted professional fees (line 8000, Adjusted gross sales or adjusted professional fees) plus any reserves deducted last year (line 8290, Reserves deducted last year), and any other income (line 8230, Other income). Enter this amount on the appropriate line of your income tax return.

Note

Generally, you have to register for the GST/HST if you provide taxable supplies in Canada and your total revenues from worldwide taxable supplies (before expenses) from all your businesses and those of your associates are more than $30,000 over the last four consecutive calendar quarters or in any single calendar quarter.

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Date modified:
2017-01-03