| Protected B when completed | |||||||||||||||||||||||||||||||||||||||||||||
| Part 3A – Business income Fill in this part onlyif you have business income. If you have professional income, leave this part blank and fill in Part 3B. If you have both business and professional income, you have to fill out a separate Form T2125 for each. |
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| Part 3B – Professional income Fill in this part only if you have professional income. If you have business income, leave this part blank and fill in Part 3A. If you have both business and professional income, you have to fill out a separate Form T2125 for each. |
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| Note: You can no longer use the transitional rules which allowed you to include your work-in-progress (WIP) progressively in your income if you had made an election to exclude your WIP. For more information on the inclusion of WIP in your income, see Chapter 2 of Guide T4002. |
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Part 3A – Business income |
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| Gross sales, commissions or fees (include GST/HST collected or collectible) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3A | ||||||||||||||||||||||||||||||||||||||||||||
| GST/HST, provincial sales tax, returns, allowances, discounts, and GST/HST adjustments (included in amount 3A). . . . . . . . . . . | 3B | ||||||||||||||||||||||||||||||||||||||||||||
| Subtotal: Amount 3A minus amount | 3B | 3C | |||||||||||||||||||||||||||||||||||||||||||
| If you are using the quick method for GST/HST – Government assistance calculated as follows: | |||||||||||||||||||||||||||||||||||||||||||||
| GST/HST collected or collectible on sales, commissions and fees eligible for the quick method . . . . . . | 3D | ||||||||||||||||||||||||||||||||||||||||||||
| GST/HST remitted: (sales, commissions and fees eligible for the quick method plus | |||||||||||||||||||||||||||||||||||||||||||||
| GST/HST collected or collectible) multiplied by the applicable quick method remittance rate . . . . | 3E | ||||||||||||||||||||||||||||||||||||||||||||
| Subtotal: Amount 3D minus amount | 3E | 3F | |||||||||||||||||||||||||||||||||||||||||||
| Adjusted gross sales: Amount 3C plus amount 3F (enter on line 8000 of Part 3C) . . . . . . . . . . . . . . . . . . . . . . . . . | 3G | ||||||||||||||||||||||||||||||||||||||||||||
Part 3B – Professional income |
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| Gross professional fees including work-in-progress (WIP) and GST/HST collected or collectible . . . . . . . . . . . . . . . . . . . | 3H | ||||||||||||||||||||||||||||||||||||||||||||
| GST/HST, provincial sales tax, returns, allowances, discounts, and GST/HST adjustments (included in amount 3H) . . . . . . . . . . . . . . | 3I | ||||||||||||||||||||||||||||||||||||||||||||
| Subtotal: Amount 3H minus amount | 3I | 3J | |||||||||||||||||||||||||||||||||||||||||||
| If you are using the quick method for GST/HST – Government assistance calculated as follows: | |||||||||||||||||||||||||||||||||||||||||||||
| GST/HST collected or collectible on professional fees eligible for the quick method . . . . . . . . . . . . | 3K | ||||||||||||||||||||||||||||||||||||||||||||
| GST/HST remitted: (professional fees eligible for the quick method plus GST/HST collected or | |||||||||||||||||||||||||||||||||||||||||||||
| collectible) multiplied by the applicable quick method remittance rate . . . . . . . . . . . . . | 3L | ||||||||||||||||||||||||||||||||||||||||||||
| Subtotal: Amount 3K minus amount | 3L | 3M | |||||||||||||||||||||||||||||||||||||||||||
| Adjusted professional fees: Amount 3J plus amount 3M (enter on line 8000 of Part 3C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3N | ||||||||||||||||||||||||||||||||||||||||||||
Part 3C – Gross business or professional income |
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| Adjusted gross sales (amount 3G) or adjusted professional fees (amount 3N) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 8000 | ||||||||||||||||||||||||||||||||||||||||||||
| Reserves deducted last year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 8290 | ||||||||||||||||||||||||||||||||||||||||||||
| Other income (specify)*: | 8230 | ||||||||||||||||||||||||||||||||||||||||||||
| Subtotal: Line 8290 plus line 8230 | ► | 3O | |||||||||||||||||||||||||||||||||||||||||||
| Gross business or professional income: Line 8000 plus amount 3O . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 8299 | ||||||||||||||||||||||||||||||||||||||||||||
| Report the gross business or professional income from line 8299 on the applicable line of your income tax and benefit return as indicated below: | |||||||||||||||||||||||||||||||||||||||||||||
| • business income on line 13499 | |||||||||||||||||||||||||||||||||||||||||||||
| • professional income on line 13699 | |||||||||||||||||||||||||||||||||||||||||||||
| • commission income on line 13899 | |||||||||||||||||||||||||||||||||||||||||||||
| * You may have received assistance from COVID-related measures from the federal, provincial or territorial governments. For more information on how to report COVID-related assistance, go to canada.ca/en/revenue-agency/services/wage-rent-subsidies/report-subsidy-tax-return.html. |
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| For Parts 3D, 4 and 5, if GST/HST has been remitted or an input tax credit has been claimed, do not include GST/HST when you calculate the cost of goods sold, expenses or net income (loss). If you are using the quick method for GST/HST, include the GST/HST paid or payable when you calculate the cost of goods sold, expenses or net income (loss). |
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Part 3D – Cost of goods sold and gross profit |
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| If you have business income, fill in this part. Enter only the business part of the costs. | |||||||||||||||||||||||||||||||||||||||||||||
| Gross business income (line 8299 of Part 3C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3P | ||||||||||||||||||||||||||||||||||||||||||||
| Opening inventory (include raw materials, goods in process and finished goods) . . . . . . . . . . . . . . | 8300 | 3Q | |||||||||||||||||||||||||||||||||||||||||||
| Purchases during the year (net of returns, allowances and discounts) . . . . . . . . . . . . . . . . . . . . . . | 8320 | 3R | |||||||||||||||||||||||||||||||||||||||||||
| Direct wage costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 8340 | 3S | |||||||||||||||||||||||||||||||||||||||||||
| Subcontracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 8360 | 3T | |||||||||||||||||||||||||||||||||||||||||||
| Other costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 8450 | 3U | |||||||||||||||||||||||||||||||||||||||||||
| Subtotal: Add amounts 3Q to 3U | 3V | ||||||||||||||||||||||||||||||||||||||||||||
| Closing inventory (include raw materials, goods in process and finished goods) . . . . . . . . . . . | 8500 | ||||||||||||||||||||||||||||||||||||||||||||
| Cost of goods sold: Amount 3V minus line 8500 | 8518 | ► | |||||||||||||||||||||||||||||||||||||||||||
| Gross profit (or loss): Amount 3P minus line 8518 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 8519 | ||||||||||||||||||||||||||||||||||||||||||||
| T2125 E (23) | Page 2 of 8 | ||||||||||||||||||||||||||||||||||||||||||||