T2125 - Statement of business or professional activities

Entering this Amount

Lines 13500 to 14300: Self-employment income

The amounts on lines 13500 to 14300 are your net income from self-employment.


  • Line 13500: Business income
  • Line 13700: Professional income
  • Line 13900: Commission income
  • Line 14100: Farming income
  • Line 14300: Fishing income

 

To review and confirm the source amounts of your self-employment income:
  1. Select X in the upper-right corner to close the Help window.
  2. In the upper-right corner of your screen, select Find.
  3. In the Find window, type Self-employment.
  4. Select Self-employment from the list, and select Go.

 

Frequently Asked Questions

Am I employed or self-employed?

Am I employed or self-employed?

You may need to determine your status, for example, if you work on contract. Generally, the degree of control over the work you perform is a determining factor in deciding whether you are an employee or self-employed.
You are likely considered an employee if your employer:
  • decides where, when, and how the work is to be done;
  • establishes your working hours;
  • determines your salary amount;
  • supervises your activities; and
  • assesses the quality of your work.

As an employee, you could be entitled to receive certain benefits such as sick leave, paid statutory holidays, and vacation pay. Also, you will probably be subject to Canada Pension Plan (CPP) or Quebec Pension Plan (QPP), and Employment Insurance (EI) deductions. You should receive a T4 slip from your employer.

You are likely considered self-employed if the following apply:
  • control the time, place, and manner of performing your activities
  • supply your own equipment and tools, and assume the rental and maintenance costs
  • make a profit or incur a loss, and cover operating costs
  • integrate your client's activities into your own business activities

As a self-employed worker, you might be entitled to claim expenses incurred to earn business income. Generally, you are not entitled to receive EI benefits. In addition, you will have to remit both the employer's and employee's shares of CPP (QPP in Quebec) contributions, and pay your income tax in quarterly instalments. See EI benefits for self-employed people for details of EI benefits.

For more information on determining your status, get the guide RC4110, Employee or Self-Employed? from the CRA web site or by calling 1 800 959-2221. If in doubt, request a CRA ruling from Requesting a ruling.
Is it rental income or business income?

Rental Operations - Property or Business Income?

The Canada Revenue Agency says...

To determine whether your rental income is from property or from business, consider the number and kinds of services you provide for your tenants.

In most cases, you are earning income from property if you rent space and provide basic services only. Basic services include heat, light, parking, and laundry facilities. If you provide additional services to tenants, such as cleaning, security, and meals, you may be carrying on a business. The more services you provide, the greater the chance that your rental operation is a business.

For more information about how to determine if your rental income is income from property or income from business, see Interpretation Bulletin IT-434, Rental of Real Property by Individual, and its Special Release.

Note:

If your rental operation is a business, see Guide T4002, Business and Professional Income.

If your rental income is from property (not business), see Guide T4036, Rental Income.

Related information
Capital cost allowance guide
T1A - Request for loss carryback