Tax Advice

If you have a home-based business and/or operate a business without being incorporated, the Canada Revenue Agency (CRA) considers you to be self-employed or a sole proprietor.

You will be reporting your income by recording it on lines 135 to 143 of the T1 General Form.

To determine your income you will need to complete Form T2125 titled Statement of Business or Professional Activities. If you have more than one business, you will need to fill out a T2125 for each one.

This month, I would like to bring to your attention what you need to consider when preparing your tax return. The deadline for filing your tax return and paying any taxes owing for 2011 is Monday, April 30.

The income you earn during a calendar is reported on tax information slips, also known as T slips. Below is a list of the ones you may receive:

T4, Statement of Renumeration Paid

T4A, Statement of Pension Retirement, Annuity, and Other Income

T4A (OAS)
, Statement of Old Age Security