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Problem with T2125 (Statement of Business or Professional Activitities

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When looking at my computed Tax Return
and the Statement of Professional or Business Income Activities.

The form and tax guide says the amount of income 
(line A) is to include GST/HST.

Then on line (i) is where the amount 
of GST/HST is to be entered,
so it can be subtracted from line A to
give line B. Line B will be the amount of income
not including GST/HST collected.

However, I can not figure out
where to enter the GST/HST paid
during the "Interview" phase to get
the GST/HST to appear in line (i).

There are places to enter GST/HST
information in the interview but
they appear to be tied to lines (ii) and (iii)
and not to line (i).

Thanks for your help.
 

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ufile is broken - it seems to add your hst collected to your professional income (which already includes the hst collected) instead of subtracting it.

 

To get ufile to work you need to eliminate HST amounts.

 

Probably some subtle thing about "quick method" for HST that i do not understand.

 

By removing HST from my professional fees and entering 0 on the GST/HST collected field I got ufile to agree with my paper T2125.

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Thanks.

 

Those quick method fields are used for Lines (ii) and (iii) on the form.

I entered 10 and 20 into the interview to see where they come up.

From what I can tell from the guide those are different than the line

we are looking for. As far as I can tell it is missing.

 

I too was thinking I would just leave it but I'm a bit concerned that

when I EFILE, it will look as though I didn't collect any GST/HST.

 

Cheers.

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These lines apply only when you have elected to use the Quick method of reporting GST/HST.

 

"The form and tax guide says the amount of income (line A) is to include GST/HST." this is not always true:

 
Look at the top of page 2 of the T2125: "If GST/HST has been remitted or an input tax credit has been claimed, do not include GST/HST when you calculate the cost of goods sold, expenses, or net income (loss) in parts 4 to 6".
 
You have already declared the taxes you collected and the taxes you paid in your GST/HST separate return.

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Sorry about the fonts, I can't seem to set them differently.

But my reading is that what you've said is true for Parts 4 to 6 and not necessarily true for Part 1 and 2.

So my problem is that I should enter fees including GST/HST

on Line A and then enter the amount of GST/HST on line (i) but

there is no way to enter a value for line (i)

 

From the guide for that form:

Line A - Sales, commissions, or fees

 

Your sales include all sales, whether you receive or will receive money, something the same as money (such as credit units that have a notional monetary value), or something from bartering. Bartering occurs when two people agree to exchange goods or services without using money. For more information on bartering, see Interpretation Bulletin IT-490, Barter Transactions.

On line A enter the gross sales, commissions, or fees (including GST/HST collected or collectible).

On line (i) enter any PST, GST/HST, returns, allowances, discounts included in sales, and GST/HST adjustments. Line B is the total of line A minus line (i).

Note

If you elected to use the quick method of accountingoption to calculate your GST/HST remittance, calculate goverment assitance as follows:

  • On line (ii) enter GST/HST collected or collectible on sales, commissions and fees eligible for the Quick Method;
  • For each applicable remittance rate, include (sales, commissions and fees eligible for the Quick Methodplus GST/HST collected or collectible) multipliedby the Quick Method remittance rate (place this amount on line (iii)). This is the amount you entered on line 103 of your GST/HST return;
  • The subtotal at line (iv) is line (ii) minus line (iii).

For more information on the Quick Method and examples of how it works, see Guide RC4058, Quick Method of Accounting for GST/HST.

If you are a self-employed commission salesperson, enter the commissions you received on this line.

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As mentioned above that is in reference to parts 4 to 6 and I'm having problems with Part 1.

Regardless, this is a bug and it is a problem and it means that I can't EFILE.

In fact this bug and lack of clarity in the interview questions means my 2011 filing was

incorrect and I paid taxes on double the amount of GST/HST I collected :-(

 

I've been finding the quality of the questions provided in the Interview to vague for

our purposes, to the point where we need to fill out our taxes manually, then try

to figure out what values to input into UFile and where to get it to agree with our numbers.

For what, just so we can EFILE? I'm not sure of the value anymore :-(

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Had the same question for years but I may have found the solution. Please correct me if I'm wrong. 

On Ufile Interview page T2125 - Business, I entered on the line "Gross sales, commissions or fees" my income including HST.

Then on the line "GST/QST included in sales" the amount of HST I collected. 

My guess is, Ufile just missed adding/typing "HST" to that line in the software and reads only "GST/QST included in sales"

That put the the correct numbers in the actual return in correct places and HST is deducted from "Gross sales, commissions or fees"

i.e. in "Statement of Business or Professional Activities, Part 3A -Business Income,

Line1(3A) is Gross including HST,

Line2(3B) is HST and 

Line3(3C) is Line1 minus Line2, as it supposed to be.

Line7(3G) "Adjusted gross sales" equals Line3(3C)

Cheers

Leo

Edited by LeoG

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