T1 Guide: Lines 135 and 162 - Self-employment income - Business income

The Canada Revenue Agency says...

General Income Tax and Benefit Guide

Enter on the appropriate line your gross and net income or loss from self-employment. If you have a loss, show it in brackets. Include with your paper return a statement showing your income and expenses.

You have to file Form T1139, Reconciliation of 2010 Business Income for Tax Purposes, with your return for 2010 if you want to keep a year-end that does not finish on December 31, 2010. However, if you filed Form T1139 with your return for 2009 you may have to complete the version of this form for 2010. For more information, see guide RC4015, Reconciliation of Business Income for Tax Purposes.


You may have to make Canada Pension Plan contributions on your self-employment earnings. See line 222.

You may be able to enter into an agreement with the Canada Employment Insurance Commission through Service Canada to participate in the new Employment Insurance (EI) Measure for Self-Employed People. For more information, contact Service Canada, or visit their Web site at www.servicecanada.gc.ca.

If a child who was born in 1993 or later is reporting certain self-employment income, see Split income of a child under 18.

The following guides contain more information and forms you may need to help you calculate your self-employment income:

If you are participating in the AgriStability and AgriInvest Programs and you are filing a paper return, use the envelope contained in your Guide RC4060 or Forms Book RC4408-2.

If you use your home for day care, see Pamphlet P134, Using Your Home for Day Care, for more information.

Generally, if you were a limited or non-active partner, you enter your net income or loss on line 122. However, if your net income or loss is from a rental operation, enter the amount on line 126. If it is from a farming operation, enter it on line 141.

If you were an active partner and received a T5013 or T5013A slip, report the amount from boxes 20, 21, 35, 37, 39, 41, and 43 on the applicable line of your return. This is your share of the partnership's net income or loss. Also report the partnership's gross income as shown in boxes 162, 164, 166, 168, and 170. Attach the T5013 or T5013A slip to your paper return. If you did not receive this slip, you should attach the applicable self-employment form indicated above or a copy of the partnership's financial statement.

For more information, contact the CRA's Business Enquiries service.

Tax Shelters

Tax Shelters

To claim deductions, losses, or credits from tax shelter investments, attach to your paper return any applicable T5003 slips and a completed Form T5004, Claim for Tax Shelter Loss or Deduction. Also, if applicable, attach any T5013A slips. Your form must show the tax shelter identification number.

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Business and Professional Income