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.