If you’re self-employed (sole proprietor, independent contractor, freelancer, or gig worker), you report your business results on Form T2125 – Statement of Business or Professional Activities. The CRA expects your income and expenses to be reasonable, supported by documents, and allocated correctly between business and personal use. To make this easy for clients, we use a structured Self-Employment Worksheet (T2125) (the attached form). It mirrors the CRA’s logic: Income → Cost of Sales → Expenses → CCA (capital assets) → Home Office → Vehicle → Net business income. 1) What the CRA actually cares about (and what triggers problems) “Reasonable” … Continue reading Self-Employed in Canada: How to Stay CRA-Ready, Pay Less Tax, and Keep Your Records Clean (T2125)