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Protected B when completed

Statement of Business or Professional Activities

•Use this form to calculate your self-employment business and professional income.

•For each business or profession, fill in a separate Form T2125.

•Fill in this form and send it with your income tax and benefit return.

•For more information on how to fill in this form, see guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income.

Part 1 – Identification

Your name

Your social insurance number

Business name

Business number

Business address

City

Prov./Terr.

Postal code

Fiscal

Date (YYYYMMDD)

Was this your last year of business?

Yes

period

From

Main product or service

Industry code

(see the appendix in Guide T4002)

Accounting method

Cash

Accrual

Tax shelter identification number

Partnership business number

Your percentage

(commission only)

of the partnership

Name and address of person or firm preparing this form

Part 2 – Internet business activities

If your web pages or websites generate business or professional income, fill in this part of the form.

How many Internet web pages and websites does your business earn income from? Enter "0" if none

Provide up to five main web page or website addresses, also known as uniform resource locator (URL):

http://

Percentage of your gross income generated from the web pages and websites.		%
(If no income was generated from the Internet, enter "0".)

T2125 E (19)

(Ce formulaire est disponible en français.)

Page 1 of 6

Protected B when completed

Part 3A – Business income

Fill in this part only if 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.

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.

Note: New rules allow you to include your work in progress (WIP) progressively if you elected to use billed basis accounting for the last tax year that started before March 22, 2017. Generally, for the first tax year that starts after March 21, 2017, you must include 20% of the lesser of the cost and the fair market value of WIP. The inclusion rate increases to 40% in the second tax year that starts after March 21, 2017, 60% in the third year, 80% in the fourth year, and 100% in the fifth and all subsequent tax years. For more information, see chapter 2 of guide T4002.

Part 3A – Business income

Gross sales, commissions, or fees (include GST/HST collected or collectible) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

GST/HST, provincial sales tax, returns, allowances, discounts, and GST/HST adjustments (included in amount 3A) . . . . . . . . . . . . . . .

Subtotal: Amount 3A minus amount 3B

If you are using the quick method for GST/HST – Government assistance calculated as follows:	3D
GST/HST collected or collectible on sales, commissions and fees eligible for the quick method

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

Adjusted gross sales: Amount 3C plus amount 3F (enter on line 8000 of Part 3C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part 3B – Professional income

Gross professional fees including work-in-progress (WIP) and GST/HST collected or collectible . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

GST/HST, provincial sales tax, returns, allowances, discounts, and GST/HST adjustments (included in amount 3H) and any WIP at the end of the year you elected to exclude . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Subtotal: Amount 3H minus amount 3I

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
		3L
	. . . . . . . . .
	Subtotal: Amount 3K minus amount 3L

Work-in-progress (WIP), start of the year, per election to exclude WIP (see Guide T4002, Chapter 2) . . . . . . . . . . . . . . . . . . . . . . . . . . .

Adjusted professional fees: Amount 3J plus amount 3M plus amount 3N (enter on line 8000 of Part 3C) . . . . . . . . . . . . . . . . . . . . . .

Part 3C – Gross business or professional income

Adjusted gross sales (amount 3G) or adjusted professional fees (amount 3O) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8000 Reserves deducted last year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8290

Other income	8230	►
Other income	Subtotal. . . . . . . .: .Line. . . 8290. . . . .plus. . . .line. 8230

Gross business or professional income: Line 8000 plus amount 3P	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

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).

Part 3D – Cost of goods sold and gross profit

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). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Opening inventory (include raw materials, goods in process, and finished goods)	8300	3R
	8300	3R
		3S
Purchases during the year (net of returns, allowances, and discounts)	8320
	8320
	8340	3T
Direct wage costs

		3U
Subcontracts	8360
	8360
	8450	3V
Other costs

		3W
Subtotal: Add amounts 3R to 3V



Closing inventory (include raw materials, goods in process, and finished goods)	8500	►
	8500
	8518
Cost of goods sold: Amount 3W minus line 8500

Gross profit (or loss): Amount 3Q minus line 8518	8519

Page 2 of 6

Protected B when completed

Part 4 – Net income (loss) before adjustments

Gross business or professional income (line 8299 of Part 3C) or Gross profit (line 8519 of Part 3D). . . . . . . . . . . . . . . . . . . . . . . . .

Expenses (enter only the business part)

Advertising		8521	4B
		8521	4B
			4C
Meals and entertainment. . .

			4D
Bad debts

			4E
Insurance

			4F
Interest and bank charges. .

			4G
Business taxes, licences, and memberships

		8810	4H
Office expenses

			4I
Office stationery and supplies

		8860	4J
Professional fees (includes legal and accounting fees)

		8871	4K
Management and administration fees

			4L
Rent

			4M
Repairs and maintenance . .

			4N
Salaries, wages, and benefits (including employer's contributions)

			4O
Property taxes

			4P
Travel expenses

			4Q
Utilities

			4R
Fuel costs (except for motor vehicles)

			4S
Delivery, freight, and express		9275
		9275
		9281	4T
Motor vehicle expenses (not including CCA) (amount 15 of Chart A)


Capital cost allowance (CCA). Enter amount i of Area A minus any personal part and any			4U
		9936
CCA for business-use-of-home expenses		9936
CCA for business-use-of-home expenses			4V
Other expenses (specify):
		9270
		9270
	Total expenses: Total of amounts 4B to 4V	9368	►
		9368

Net income (loss) before adjustments: Amount 4A minus line 9368 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9369

Part 5 – Your net income (loss)

Your share of line 9369 or the amount from your T5013 slip, Statement of Partnership Income . . . . . . .

GST/HST rebate for partners received in the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9974 Total: Amount 5A plus line 9974

Other amounts deductible from your share of the net partnership income (loss) (amount 6F) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Net income (loss) after adjustments: Amount 5B minus line 9943 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Business-use-of-home expenses (amount 7P) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Your net income (loss): Amount 5C minus line 9945 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Report the net income amount from line 9946 on the applicable line of your income tax and benefit return as indicated below:

•business income on line 13500

•professional income on line 13700

•commission income on line 13900

►

9943

9945

9946

Page 3 of 6

Protected B when completed

Part 6 – Other amounts deductible from your share of the net partnership income (loss)

Claim expenses you incurred that were not included in the partnership statement of income and expenses, and for which the partnership did not reimburse you. These claims must not be included in the claims already calculated for the partnership.

List details of expenses:	Expense amounts

Total other amounts deductible from your share of the net partnership income (loss): Add amounts 6A to 6E (enter this on line 9943 of Part 5)

Part 7 – Calculation of business-use-of-home expenses

Heat			7A
			7A
			7B
Electricity

			7C
Insurance
Insurance
Maintenance			7D
			7D
			7E
Mortgage interest
Mortgage interest
Property taxes			7F
			7F
			7G
Other expenses (specify):
Other expenses (specify):
	Subtotal: Add amounts 7A to 7G		7H
	Subtotal: Add amounts 7A to 7G		7H
Personal-use part of the business-use-of-home expenses			7I
Personal-use part of the business-use-of-home expenses			7I
	Subtotal: Amount 7H minus amount 7I		7J
	Subtotal: Amount 7H minus amount 7I		7J
Capital cost allowance (business part only), which means amount i of Area A minus any portion of			7K
CCA that is for personal use or entered on line 9936 of Part 4

			7L
Amount carried forward from previous year
Amount carried forward from previous year
	Subtotal: Add amounts 7J to 7L		7M
	Subtotal: Add amounts 7J to 7L		7M
Net income (loss) after adjustments (amount 5C) (if negative, enter "0")			7N
			7N
Business-use-of-home expenses available to carry forward: Amount 7M minus amount 7N			7O
. . .(if negative, enter "0")
. . .(if negative, enter "0")
				7P
Allowable claim: The lesser of amount 7M and 7N above (enter your share of this amount on line 9945 of Part 5)

		. . .	. . . .

Part 8 – Details of other partners

Do not fill in this chart if you must file a partnership information return.

Name of partner

Address

Prov./Terr.

Postal code

Share of net income or (loss)

Percentage of partnership

Name of partner

Address

Prov./Terr.

Postal code

Share of net income or (loss)

Percentage of partnership

Name of partner

Address

Prov./Terr.

Postal code

Share of net income or (loss)

Percentage of partnership

Name of partner

Address

Prov./Terr.

Postal code

Share of net income or (loss)

Percentage of partnership

Part 9 – Details of equity

Total business liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9931 Drawings in the current year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9932 Capital contributions in the current year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9933

Page 4 of 6

the year

CCA for the year

UCC at the end of

CCA

Rate (col. 10 multiplied by

% col. 11 or a lower (col. 6 minus col. 12) amount)

when completed

Protected B

Area A – Calculation of capital cost allowance (CCA) claim

Class Undepreciated

number

capital cost (UCC)

at the start of the year

Cost of additions

in the year

(see Area B and C

below)

Cost of additions from

column 3 which are AIIP or zero-emission vehicles (ZEV) (new property must be available for use in the year)

Note 1

Proceeds of dispositions

in the year (see

Area D and E below)

UCC after additions

and dispositions (col. 2 plus col. 3 minus col. 5)

7	8
Proceeds of	UCC adjustment for
dispositions available	current-year additions
to reduce additions of	of AIIP and ZEV
AIIP and ZEV (col. 5	(col. 4 minus col. 7)
minus col. 3 plus	multiplied by the
column 4). If negative,	relevant factor. If
enter "0"	negative, enter "0".
Note 2	Note 3

	9	10
	Adjustment for	Base amount
	current-year additions	for CCA
	subject to the half-year	(col. 6 plus col. 8
	rule	(col. 6 plus col. 8
	rule	minus col. 9)
		minus col. 9)
	1/2 multiplied by
	(col. 3 minus col. 4
	minus col. 5).
	If negative, enter "0."

Total CCA claim for the year: Total of column 12 (enter the amount on line 9936 of Part 4, ► amount i minus any personal part and any CCA for business-use-of-home expenses **)

*If you have a negative amount in column 6, add it to income as a recapture in Part 3C on line 8230. If no property is left in the class and there is a positive amount in the column, deduct the amount from income as a terminal loss in Part 4 on line 9270. Recapture and terminal loss do not apply to a class 10.1 property. For more information, read Chapter 3 of guide T4002.

** For information on CCA for "Calculation of business-use-of-home expenses," see "Special situations" in Chapter 4 of guide T4002. To help you calculate the capital cost allowance claim, see the calculation charts in Areas B to F.

Note 1: Columns 4, 7, and 8 apply only to accelerated investment incentive properties (AIIPs) (see Regulation 1104(4) of the Income Tax Regulations for the definition), zero-emission vehicles, and zero-emission passenger vehicles. In this chart ZEV represents both zero-emission vehicles and zero-emission passenger vehicles. An AIIP is a property (other than ZEV) that you acquired after November 20, 2018 and became available for use before 2028. A ZEV is a motor vehicle included in Class 54 or 55 that you acquired after March 18, 2019 and became available for use before 2028. For more information on AIIP and ZEV, see guide T4002.

Note 2: The proceeds of disposition of a zero-emission passenger vehicle (ZEPV) that has been included in Class 54 and that is subject to the $55,000 capital cost limit will be adjusted based on a factor equal to the capital cost limit of $55,000 as a proportion of the actual cost of the vehicle. For dispositions after July 29, 2019, the government proposes that the actual cost of the vehicle be adjusted for any payments or repayments of government assistance that you may have received or repaid in respect of the vehicle. For more information on proceeds of disposition, read Class 54 in guide T4002.

Note 3: The relevant factors for properties available for use before 2024 are 2 1/3 (classes 43.1 and 54), 1 1/2 (class 55), 1 (classes 43.2 and 53), 0 (classes 12, 13, 14, 15), and 1/2 for the remaining accelerated investment incentive properties.

For more information on accelerated investment incentive properties, see guide T4002 or go to canada.ca/taxes-accelerated-investment-income.

Area B – Equipment additions in the year

Class

number

Property

description

Total cost

Personal part (if applicable)

Business part

(column 3 minus

column 4)

Total equipment additions in the year: Total of column 5

9925

Area C – Building additions in the year

1	2	3	4	5
Class	Property	Total cost	Personal part	Business part
number	description		(if applicable)	(column 3 minus
				column 4)

Total of building additions in the year: Total of column 5

Area D – Equipment dispositions in the year

9927

1	2	3	4	5
Class	Property	Proceeds of disposition	Personal part	Business part
number	description	(should not be more than	(if applicable)	(column 3 minus
		the capital cost)		column 4)

Total equipment dispositions in the year: Total of column 5

9926

Note: If you disposed of property in the year, see Chapter 3 of Guide T4002 for information about your proceeds of disposition.

Page 5 of 6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Protected B when completed

Area E – Building dispositions in the year

Class

number

Property

description

Proceeds of disposition (should not be more than the capital cost)

Personal part (if applicable)

Business part

(column 3 minus

column 4)

Total building dispositions in the year: Total of column 5 9928

Note: If you disposed of property in the year, see Chapter 3 of guide T4002 for information about your proceeds of disposition.

Area F – Land additions and dispositions in the year
	9923
Total cost of all land additions in the year
	9924
Total proceeds from all land dispositions in the year
Note: You cannot claim capital cost allowance on land. For more information, see Chapter 3 of Guide T4002.

Chart A – Motor vehicle expenses

Kilometres you drove in the fiscal period that was part of earning business income . . . . . . . . . . . . . . . . . .

Total kilometres you drove in the fiscal period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Fuel and oil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interest (see Chart B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Licence and registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Maintenance and repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Leasing (see Chart C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other expenses (specify):

				Total motor vehicle expenses: Add amounts 3 to 10
Business use	(	amount 1	:		) × amount 11 :
part:		amount 2	:
part:		amount 2	:

. . . . . . . . . . . . . . . . . . . . . =

Business parking fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Supplementary business insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Allowable motor vehicle expenses: Add amounts 12, 13, and 14 (include this total on line 9281 of Part 4) . . . . . . . . . . . . . . . . . . . . .

Note: You can claim CCA on motor vehicles in Area A.

Chart B – Available interest expense for passenger vehicles and zero-emission passenger vehicles

Total interest payable (accrual method) or paid (cash method) in the fiscal period . . .			. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		.
$10*	×	the number of days in the fiscal period for which interest		. . . . . . . . . . . . . . . . . . . . .	=
		was payable (accrual method) or paid (cash method)

Available interest expense: The lesser of amount 16 and 17 (include this in amount 4 of Chart A) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

* For passenger vehicles bought after 2000.

Chart C – Eligible leasing cost for passenger vehicles**

Total lease charges incurred in your current fiscal period for the vehicle	. . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . .	. . . . . . .
Total lease payments deducted before your current fiscal period for the vehicle	. . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . .	. . . . . . .
Total number of days the vehicle was leased in your current and previous fiscal periods . . .		. . . . . . . . . . . . . . . . . . . . . . . . . . .	. . . . . . .
Manufacturer's list price	. . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . .	. . . . . . .
Use a GST rate of 5% or HST rate applicable to your province.
Amount 22 or ($35,294 + GST and PST, or HST on $35,294), whichever is more		►	× 85% =
[($800 + GST and PST, or $800 + HST) × amount 21] ►	–	amount 20:	=

[($30,000 + GST and PST, or $30,000 + HST) × amount 19]= amount 23

Eligible leasing cost: Whichever is less of amount 24 or 25 (enter in amount 8 of Chart A above) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

**Includes a vehicle that would qualify as a zero-emission passenger vehicle if you owned it.

See the privacy notice on your return.

Page 6 of 6

Question	Answer
Form Name	Cra Form T2125
Form Length	6 pages
Fillable?	No
Fillable fields	0
Avg. time to fill out	1 min 30 sec
Other names	statement form t2125, form t2125, t2125 file, t2125 form pdf

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