Your T2125 package
Tax time fills in the lines of your T2125 from your records, helps with home office and vehicle expenses, checks your receipts, and gives you a PDF and an audit archive.
If you are a sole proprietor, you report your business income and expenses on form T2125, Statement of Business or Professional Activities, with your personal income tax return. The T2125 year-end package is on Tax time, in early access. There is one card for each year, like "2025 T2125, $41,250 net income, 3 receipts to fix".
CollabNorth doesn't file for you. You copy each line into your tax software, or send the package to your accountant.
The lines
Each line shows the CRA line number, what it means in plain words, and the amount. Tap How we got this to see the invoices, credit notes or expenses behind it. The lines follow CRA guide T4002.
| Line | What it is | Where the number comes from |
|---|---|---|
| 3A | Gross sales | Issued invoices dated in the year, before tax, plus the GST/HST on them. Provincial sales tax is left out. |
| 3B | GST/HST collected | If you're registered: the GST/HST included on line 3A. Otherwise zero. |
| 3C | Subtotal | 3A minus 3B |
| 3D | Returns, allowances, discounts | Credit notes issued in the year, before GST/HST if you're registered |
| 8000 | Adjusted gross sales | 3C minus 3D |
| 8230 | Other income | You type it in |
| 8299 | Gross business income | 8000 plus 8230 |
| 8300-8519 | Cost of goods sold, gross profit | Materials (8320) and subcontractors (8360) from your expenses. You type in opening and closing inventory. |
| 8521-9270 | Expenses | Your expenses, by category. See Expense categories and the T2125. |
| 8523 | Meals and entertainment | Half of what you spent. See Meals and entertainment. |
| 9281 | Motor vehicle expenses | The vehicle helper. See Vehicle expenses. |
| 9936 | Capital cost allowance (CCA) | You type it in from your CCA schedule, with a note. Equipment you bought this year is listed to help. |
| 9368 | Total expenses | All expense lines, including CCA |
| 9369 | Net income before adjustments | Gross profit minus total expenses |
| 9945 | Business-use-of-home | The home office helper. See Home office. |
| 9946 | Your net income (loss) | 9369 minus 9945. This goes on line 13500 of your income tax return. |
You also type in bad debts (8590), management fees (8871) and salaries you paid employees (9060) if you have them.
A few things to know:
- The year is your fiscal year. For almost every sole proprietor that is January 1 to December 31.
- Income counts when you invoice, not when you're paid. Drafts and voided invoices don't count. Line 8000 matches income on Reports.
- If you're registered for GST/HST, each expense counts at what it cost you after the GST/HST you claim back as an input tax credit, and line 3B takes the GST/HST out of your sales. If you're not registered, the tax you paid is part of the cost.
- Quick Method filers report line 3B differently. Ask your accountant.
- Sales you didn't invoice in CollabNorth aren't included. Add them on your return.
- Corporations file a T2, not a T2125. See Corporations: your T2 and GIFI package.
Receipt audit
Under the helpers is a list of expenses in the year that could be questioned in a CRA review:
- No receipt photo. CRA can ask to see it for six years.
- $100 or more without the supplier's GST/HST number, when you claim the tax back.
- A supplier GST/HST number that doesn't look right.
- A snapped receipt still to finish, or an expense filed under Other.
- $500 or more: check the receipt also shows your business name, the payment terms and what you bought.
Tap Fix to open the expense right there. See What a receipt needs.
Download the package
- Download PDF: every line, the home office and vehicle calculations and the receipt audit summary, on one or two pages.
- Download audit archive: one ZIP with the PDF, your income and expenses for the year as spreadsheets, and every receipt photo. It is built on your device, so a large year can take a minute. If a receipt can't be downloaded, it is listed in the README inside the ZIP.
Mark final
When you're done, tap Mark final. CollabNorth keeps a copy of every line as it stood that day and downloads the PDF. It doesn't lock your records (a filed GST/HST period does that). If your records change later, the page tells you which lines differ. Only the owner can Reopen the year.
This is general information to help you keep your own records. It is not tax or legal advice.
Based on: CRA form T2125 and CRA guide T4002
Last checked: 2026-10-13