Monday’s= Small Business
The form T2125 is the form which is used by an unincorporated business owner to report their revenue and expenses to Canada Revenue Agency (CRA). The T2125 is a part of the personal tax return. This four-page form has a number of lines and the lines have a four-digit bolded number written to the left of each one. These numbers are called GIFI codes – which stands for General Index of Financial Information. Any line that has a GIFI code beside it is a number that CRA tracks and compares to the numbers reported by other taxpayers. This is one of the ways that CRA analyses returns and decides if there is a reason to ask the taxpayer for more information.
Having said all of this, there is a line in the expense section of T2125 which is called miscellaneous. I would recommend that you not use this line for large amounts. CRA is going to have the question – what is this taxpayer putting in miscellaneous? What are they trying to deduct that does not fit into one of the other lines?
A few bucks will not make a difference to your chances of being audited, but putting large numbers on that line is asking for attention from CRA. Generally people prefer not to interact with CRA.
No comments yet.