Question:
I am a full-time employee of ABC Corporation, but I also earned some income from a separate business I operated this year. How do I report this income? (My business is a sole proprietorship).
Answer:
As you would include your employment income on your personal tax return, you will also need to do so for all other source of income. For each business, you must complete a separate Form T2125 with your personal income tax return for the year.
In this form, you may also deduct related expenses that were paid to generate that business income. Such expenses include advertising expense, meals & entertainment, insurance, interest, office expenses, supplies, rent, maintenance and repairs, travel expenses and etc.
