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I have several businesses. How do I handle this on my income tax form?

By Susan Ward, About.com

Question: I have several businesses. How do I handle this on my income tax form?
Answer:

Once again, assuming that none of your businesses are incorporated, you will report your business income by completing Form T2125 (Statement of Business or Professional Activities). This form is included in the T1 income tax form package.

However, you will need to fill out a separate T2125 form for each business or professional or business activity that you operate. You can get more copies of these forms from the Canada Revenue Agency (CRA) website or from your local CRA office.

Your income will be the sum of the income from your multiple businesses, which you will declare on the appropriate line of your T1 income tax form.

If any of your businesses are incorporated, you will need to file a corporate tax return (a T2) for each incorporated business.

If you need more information about operating multiple businesses, refer to the CRA's bulletin IT206R: Separate Businesses.

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