Protected B when completed
Page 2 of 6
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
3A
Gross sales, commissions, or fees (include GST/HST collected or collectible) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3B
GST/HST, provincial sales tax, returns, allowances, discounts, and GST/HST adjustments (included in amount 3A) . . . . . . . . . . . . . . .
3C
Subtotal: Amount 3A minus amount 3B
3D
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 . . . . . .
3E
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 . . . . . . .
3F
Subtotal: Amount 3D minus amount 3E
3G
Adjusted gross sales: Amount 3C plus amount 3F (enter on line 8000 of Part 3C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part 3B – Professional income
3H
Gross professional fees including work-in-progress (WIP) and GST/HST collected or collectible . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3I
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3J
Subtotal: Amount 3H minus amount 3I
3K
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 . . . . . . . . . . . . . . .
3L
GST/HST remitted, (professional fees eligible for the quick method plus GST/HST collected or
collectible) multiplied by the applicable quick method remittance rate . . . . . . . . . . . . . . . . . . . . . . . . .
3M
Subtotal: Amount 3K minus amount 3L
3N
Work-in-progress (WIP), start of the year, per election to exclude WIP (see Guide T4002, Chapter 2). . . . . . . . . . . . . . . . . . . . . . . . . . .
3O
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
8000
Adjusted gross sales (amount 3G) or adjusted professional fees (amount 3O) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8290
Reserves deducted last year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8230
Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3P
Subtotal: Line 8290 plus line 8230
►
8299
Gross business or professional income: Line 8000 plus amount 3P . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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.
3Q
Gross business income (line 8299 of Part 3C). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8300
3R
Opening inventory (include raw materials, goods in process, and finished goods). . . . . . . . . . .
8320
3S
Purchases during the year (net of returns, allowances, and discounts) . . . . . . . . . . . . . . . . . . .
8340
3T
Direct wage costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8360
3U
Subcontracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8450
3V
Other costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3W
Subtotal: Add amounts 3R to 3V
8500
Closing inventory (include raw materials, goods in process, and finished goods) . . . . . . . . . . .
8518
Cost of goods sold: Amount 3W minus line 8500
►
8519
Gross profit (or loss): Amount 3Q minus line 8518. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .