02-03-2024 04:12 PM
So I have been going through past forum posts regarding declaring ebay income on your tax return, and there does not appear to be a clear answer between simply declaring your net profit on line 135 (as "Other Income") or going the extra step of filling out form T2125 ("Statement of Business or Professional Activities").
Form T2125 asks for a business name and business number (which I do not have), so do I only choose the route of filling this Form if I ever get to the stage of getting a real business name and business number?
02-03-2024 06:46 PM
If you are operating as a sole proprietor you name is your business name. If you use Line 135 you must either include completed financial statements (Income Statement & Balance Sheet) OR complete a T2125.
02-03-2024 07:58 PM
I do my taxes online with netfile. Does most software have the provision to upload a Income Statement & Balance Sheet?
02-04-2024 08:35 AM
You would need to check with the software being used. They will all provide a T2125 though, and if you have financial statements already, transferring the data to a T2125 should be straight forward. I would recommend using a T2125 as it will directly input into the system and a return auto quickly generated.
04-04-2024 08:33 PM
So my tax software allows me to add Form T2125, but when it comes to entering the industry code, it will not allow me to use 454110 (Electronic shopping and mail order houses), which I have seen people suggest in several google searches. It does not even appear in the drop down list for "Industry Code" (NAICS). What to do?
04-04-2024 08:57 PM
@treadstone68 wrote:So my tax software allows me to add Form T2125, but when it comes to entering the industry code, it will not allow me to use 454110 (Electronic shopping and mail order houses), which I have seen people suggest in several google searches. It does not even appear in the drop down list for "Industry Code" (NAICS). What to do?
It looks like I used 459999 last year. That doesn't mean it's correct though. If someone has a better fit, I'd love to know before I do mine!
04-08-2024 11:45 PM
According to my tax return from last year I used "459510 - Used merchandise retailers".
I would just pick the one that falls under "459" and most closely matches the majority of what you sell.