Part 3 - Gross business or professional income

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 C in Part 1.

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

Line 8290 - Reserves deducted last year

Include in your current year income any reserves you deducted in the previous year.

You can deduct an amount for a reserve, contingent account, or a sinking fund as long as the Income Tax Act allows it. The amount you can deduct has to be reasonable. You can find information about allowable reserves in the following publications:

• Guide T4037, Capital Gains
• Guide T4011, Preparing Returns for Deceased Persons
• Interpretation Bulletin IT-154R, Special Reserves
• Interpretation Bulletin IT-442R, Bad Debts and Reserves for Doubtful Debts

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.

Note
Do not include in income any rebate, grant, or assistance you receive, but subtract that amount from the applicable expense it relates to.

If the rebate, grant, or assistance relates to 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.

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.

If you cannot apply the rebate, grant, or assistance to reduce a particular expense or an asset's capital cost, include the total on this line. This amount must be included in income to the extent that it was not used to reduce the cost of a property or the amount of an outlay or expense.

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) plus any reserves deducted last year (line 8290), and any other income (line 8230). Enter this amount on the appropriate line of your income tax and benefit return.

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

Forms and publications

• Guide T4002, Business and Professional Income
• Guide T4011, Preparing Returns for Deceased Persons
• Guide T4037, Capital Gains
• Form T2125, Statement of Business or Professional Activities
• Form T2038 (IND), Investment Tax Credit (Individuals)
• Interpretation Bulletin IT-154R, Special Reserves
• Interpretation Bulletin IT-442R, Bad Debts and Reserves for Doubtful Debts
• Interpretation Bulletin IT-200, Surface Rentals and Farming Operations
• Interpretation Bulletin IT-273R2, Government assistance - General Comments

Related topics

• Grants, subsidies, and any other incentives or inducements