How do I fill out a Schedule 125?

Schedule 125 is a summary of the company’s income statement. Enter the total sales, operating expenses and net income on this schedule. This is where having a copy of your company’s income statement will come in handy. Similar to the balance sheet you will also have to provide the GIFI number.

Which schedule is used on income statement information?

Schedule 125, Income Statement Information, and, if necessary, Schedule 140, Summary Income Statement (You will find Schedule 140 at the end of Schedule 125.)

What is GIFI income statement?

The GIFI is an extensive list of financial statement items where each item has a unique code (for example, cash is 1001). When you use the GIFI , do not submit your financial statements with your return and schedules.

Does CRA require audited financial statements?

If your business is incorporated, Canada Revenue Agency requires financial statement information to be filed using the GIFI, or General Index of Financial Information for Corporations. Audited financial statements are not required to be filed.

What is T2 statement?

What is a T2 tax return? The T2 is the mandatory corporate income tax return form for the federal government of Canada. The exact term for this statement is “declaration of corporate income.” Each company must file a corporate income tax (T2) for each taxation year.

What is a T2 Schedule 125?

T2 Schedule 125 Schedule 125 focuses on revenue and expenses related to your corporation. It is divided between farming and non-farming revenue and expenses depending on your industry.

What is the difference between Schedule 100 and 101?

Schedule 101 allows you to compile this information by providing access to the same GIFI items and the same schedules as Schedule 100 (Balance sheet). However, do not forget to also enter the data for the year-end balance sheet in Schedule 100.

When must financial statements be audited?

A company is required to prepare its annual financial statements within six months after the end of its financial year, or such shorter period as may be appropriate to provide the required notice of an annual general meeting.

Is cash flow statement mandatory in Canada?

By Edelkoort Smethurst Schein CPAs LLP The Statement of Cash Flows is one of three financial statements required under both Canadian GAAP and IFRS, and essentially provides users with information regarding how the company obtained and used cash during the period.

What is a T5 in Canada?

Use this slip to report the various types of investment income that residents of Canada have to report on their Income Tax and Benefit Returns. For information about payments to non-residents, see Payments to non-residents of Canada. The T5 slip has three individual slips printed on each T5 sheet.

What is a T3?

Trusts use the T3 slip, Statement of Trust Income Allocations and Designations, to identify beneficiaries and to report amounts such as income and credits that the trust designates to them. Three individual slips are printed on each page or sheet of the form.

Do I need to attach Schedule 125 to my T2?

Schedule 125, Income Statement Information Corporations that are inactive throughout the tax year and that do not have balance sheet or income statement information to report are no longer required to attach schedules 100, 125, and 141 to their T2 return. However, they will be accepted if filed. Sending notes to your financial statement

What is the difference between schedule 125 and schedule 140?

Schedule 125 shows the income generated and the expenses incurred by the corporation during the tax year. If you are submitting supplementary income statements, you will also need to complete and file Schedule 140. This schedule is at the bottom of page 2 of Schedule 125.

Do inactive corporations need to file schedules 100 and 125?

Corporations that are inactive throughout the tax year and that do not have balance sheet or income statement information to report are no longer required to attach schedules 100, 125, and 141 to their T2 return. However, they will be accepted if filed.

Is there a fillable version of the t2sch125 form?

PDF fillable/saveable t2sch125-fill-20e.pdf Previous-year versions are also available. While all Canada Revenue Agency web content is accessible, we also provide our forms and publications in alternate formats (digital audio, electronic text, Braille, and large print) to allow persons with disabilities to access the information they need.