T2125 Business Income Calculator
Organize a sole-proprietor or professional income summary before completing the detailed CRA form.
Net business income
Net income before CCA
Eligible current expenses
What this estimate includes
This summary separates the adjustments that most often distort a quick profit estimate. Your filed T2125 still needs the individual revenue and expense lines, business identification and any CCA schedule.
A loss shown here is not automatically deductible; loss and hobby-versus-business questions depend on the underlying facts.
Questions this calculator answers
Who uses Form T2125?
Sole proprietors and members of partnerships commonly use T2125 to report business or professional income and expenses.
Can I deduct the personal portion of a mixed expense?
No. Only the reasonable business portion may be claimed.
Do GST/HST input tax credits stay in the expense total?
Reduce the expense by the input tax credit claimed for that expense.
Are equipment purchases current expenses?
Capital property is generally handled through the capital cost allowance rules rather than deducted as a current expense.
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