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If your business is a sole proprietorship or partnership, you can use Form T2125, Statement of Business or Professional Activities to report your income and expenses. This from is included in your T1 income tax form package.
If you operate a business in the form of sole proprietorship, you pay taxes by reporting business income (or loss) on your personal tax return. There is no separate tax return for you business. The business income (or loss) forms part of your overall income for the year.
If you are a small supplier, you are not required to charge your customers GST/HST and you cannot claim ITCs. However, you can choose to register voluntarily.
After you register GST/HST account and become a GST/HST registrant, you generally have to charge and collect the GST/HST on taxable supplies (other than zero-rated supplies) you make in Canada and file regular GST/HST returns to report that tax.
This is part two of the example about how to calculate Capital Cost Allowance (CCA).
Some supplies are exempt from the GST/HST, that is, no GST/HST applies to them. The following are examples of exempt supplies:
If you are a non-resident and receive rental income from real property in Canada, a non-resident tax at the rate of 25% of gross income has to be withheld and remitted to the Canada Revenue Agency (CRA). However, you can choose to have tax withheld on your net rental income instead of on the gross amount…
If you are a non-resident and receive rental income from real property in Canada, a non-resident tax at rate of 25% on the gross rental income has to be withheld and remitted to the Canada Revenue Agency (CRA).
The following are examples of zero-rated supplies, e.g. taxable at 0%: Basic groceries such as milk, bread, and vegetable; Agricultural products such as grain, raw wool, and dried tobacco leaves; Most farm livestock; Most fishery products such as fish for human consumption; Prescription drugs and drug-dispensing services; Certain medical devices such as hearing aids and…
In participating provinces, you pay HST rates for most of the product or services you buy. However, a point-of-sale rebate of the provincial part of HST is available for certain items. For these qualifying items, you only need to pay 5% federal part of the HST. The following items qualify for the point-of-sale rebate: