You must include the following in the calculation of your business income:
- the proceeds of your sales (including commissions);
- the value of any property or service exchanged in a barter transaction (barter refers to the practice of exchanging one property or service for another without the use of money);
- all amounts claimed in previous years as a reserve;
- all amounts or benefits received during the year;
- the value of vacation trips or gifts offered as remuneration for work carried out in your business;
- grants, subsidies or other forms of financial incentive received from a government or from a government agency or a non-government agency (except an amount already included in income or deducted in the calculation of a balance of expenses for the current or a previous taxation year or an amount used to reduce the cost of property or the amount of an expense); and
For more information about business income, see the guide Business and Professional Income (IN-155-V) and the instructions for line 164 in the guide to the income tax return (TP-1.G-V).
If you are a self-employed person, enclose either your financial statements or form TP-80-V, Business or Professional Income and Expenses, with your income tax return (TP-1-V) to report your business income. For each business you operate, you must provide separate financial statements or complete a separate copy of form TP-80-V.
Members of a partnership
If you are a member of a partnership (other than as a limited or silent partner), you can use form TP-80-V, Business or Professional Income and Expenses to calculate your income and expenses.
The documents you must enclose with your income tax return (TP-1-V) and the manner in which form TP-80-V must be completed depend on whether you received an RL-15 slip (see courtesy translation RL-15.EX-T) from the partnership.
If you received an RL-15 slip, you are not required to enclose form TP-80-V or the partnership's financial statements with your income tax return. You must instead complete Schedule L of your income tax return to report the partnership's gross income and your share of the net income (or net loss) shown on the RL-15 slip.
However, if you are deducting expenses that you incurred to earn partnership income (and that were not reimbursed to you by the partnership), enclose form TP-80-V with your return. Complete form TP-80-V as follows:
- Complete Part 1.
- Enter on line 252 the amount shown in box 1 of the RL-15 slip.
- Complete Part 7 and, if applicable, Part 8.
- Calculate your net income (or net loss) for the fiscal period.
If you did not receive an RL-15 slip, complete Schedule L and enclose either your financial statements or form TP-80-V with your income tax return. Complete form TP-80-V as follows:
- Complete Part 1.
- In Part 2, enter the additional information about the partnership.
- In Part 3, calculate the partnership's income and expenses and your net income (or net loss) for the fiscal period.
- Complete Part 6 and any other parts of the form that apply to your situation.
For more information about a partnership's obligation to file RL-15 slips, see Requirement to File an Information Return.