*** Transcriber's Note: Please set your voice synthesizer to read most punctuation. When you encounter the caret sign at the end of a line, please enter the applicable information, if necessary. *** T2124 E (05) (Page 1 of 4) Canada Customs and Revenue Agency STATEMENT OF BUSINESS ACTIVITIES For more information on how to complete this form, see the Business and Professional Income guide. Code 2 Identification Your name ^ Your social insurance number (enter 9 digits) ^ From: Year/Month/Day ^ To: Year/Month/Day ^ Was 2005 your last year of business? Yes or No ^ Business name ^ Business address ^ City, province or territory ^ Postal code ^ Main product or service ^ Industry code (see the appendix in the Business and Professional Income guide) (enter 6 digits) ^ Partnership filer identification number ^ Tax shelter identification number ^ Name and address of person or firm preparing this form ^ Business Number (enter 15 digits) ^ Your percentage of the partnership (%) ^ Income Line a: Sales, commissions, or fees ^ Minus Line a1: - Goods and services tax/harmonized sales tax (GST/HST) and provincial sales tax (if included in sales above) ^ Line a2: - Returns, allowances, and discounts (if included in sales above) ^ Line b: Total of the above two lines (line a1 and line a2) ^ Line 8000: Net sales, commissions, or fees (line a minus line b) ^ Line 8290: Reserves deducted last year ^ Line 8230: Other income ^ Line c and line 8299: Gross income (total of the above three lines) - Enter on the appropriate line of your income tax return ^ Calculation of cost of goods sold (enter business part only) Line 8300: Opening inventory (include raw materials, goods in process, and finished goods) ^ Line 8320: Purchases during the year (net of returns, allowances, and discounts) ^ Line 8360: Subcontracts ^ Line 8340: Direct wage costs ^ Line 8450: Other costs ^ Total of the above five lines (lines 8300 to 8450) ^ Line 8500: Minus - Closing inventory (include raw materials, goods in process, and finished goods) ^ Line d and line 8518: Cost of goods sold ^ Line e and line 8519: Gross profit (line c minus line d) ^ Expenses (enter business part only) Line 8521: Advertising ^ Line 8590: Bad debts ^ Line 8760: Business tax, fees, licences, dues, memberships, and subscriptions ^ Line 9275: Delivery, freight, and express ^ Line 9224: Fuel costs (except for motor vehicles) ^ Line 8690: Insurance ^ Line 8710: Interest ^ Line 8960: Maintenance and repairs ^ Line 8871: Management and administration fees ^ Line 8523: Meals and entertainment (allowable part only) ^ Line 9281: Motor vehicle expenses (not including CCA) (see Chart A on page 4) ^ Line 8810: Office expenses ^ Line 8811: Supplies ^ Line 8860: Legal, accounting, and other professional fees ^ Line 9180: Property taxes ^ Line 8910: Rent ^ Line 9060: Salaries, wages, and benefits (including employer's contributions) ^ Line 9200: Travel ^ Line 9220: Telephone and utilities ^ Line 9270: Other expenses ^ Subtotal (add all amounts from line 8521 to line 9270) ^ Line 9935: Allowance on eligible capital property ^ Line 9936: Capital cost allowance (from Area A on page 3) ^ Line f and line 9368: Total business expenses (total of the above three lines) (Subtotal + line 9935 + line 9936) ^ Line 9369: Net income (loss) before adjustments (line e minus line f) ^ T2124 E (05) (Page 2 of 4) Line g: Net income (loss) before adjustments (from line 9369 on page 1) ^ Line h: Your share of line g above ^ Line i and line 9943: Minus - Other amounts deductible from your share of net partnership income (loss) from the chart below ^ Line j: Net income (loss) after adjustments (line h minus line i) ^ Line 9945: Minus - Business-use-of-home expenses (from the chart below) ^ Line 9946: Your net income (loss) (line j minus line 9945) (enter on the appropriate line of your income tax return) ^ Other amounts deductible from your share of net partnership income (loss) *** Transcriber's Note: Enter as many lines as necessary for the Claim expenses. *** Claim expenses you incurred that were not included in the partnership statement of income and expenses, and for which the partnership did not reimburse you. ^ Total (add all claim expenses) (enter this amount on the line i above) ^ Calculation of business-use-of-home expenses Heat ^ Electricity ^ Insurance ^ Maintenance ^ Mortgage interest ^ Property taxes ^ Other expenses ^ Subtotal (add all business-use-of-home expenses) ^ Minus - Personal use part ^ Subtotal (business-use-of-home expenses minus personal use) ^ Plus - Capital cost allowance (business part only) ^ - Amount carried forward from previous year ^ Line 1: Subtotal ^ Line 2: Minus - Net income (loss) after adjustments (from line j above) - If negative, enter "0" ^ Business-use-of-home expenses available to carry forward (line 1 minus line 2) - If negative, enter "0" ^ Allowable claim (the lesser of amounts 1 or 2 above) - Enter this amount on line 9945 above ^ Details of other partners Name and address ^ Share of net income or (loss) $ ^ Percentage of partnership (%) ^ Name and address ^ Share of net income or (loss) $ ^ Percentage of partnership (%) ^ Name and address ^ Share of net income or (loss) $ ^ Percentage of partnership (%) ^ Details of equity Line 9931: Total business liabilities ^ Line 9932: Drawings in 2005 ^ Line 9933: Capital contributions in 2005 ^ T2124 E (05) (Page 3 of 4) *** Transcriber's Note: In print, Area A is in a columnar format (10 columns) with the possibility of 4 entry lines for each column. Enter as many lines as necessary for the following. *** Area A - Calculation of capital cost allowance claim Column 1: Class number ^ Column 2: Undepreciated capital cost (UCC) at the start of the year ^ Column 3: Cost of additions in the year (see Areas B and C below) ^ Column 4: Proceeds of dispositions in the year (see Areas D and E below) ^ Column 5*: UCC after additions and dispositions (column 2 plus column 3 minus column 4) ^ * If you have a negative amount in this column, add it to income as a recapture on line 8230, "Other income," on page 1. If no property is left in the class and there is a positive amount in the column, deduct the amount from income as a terminal loss on line 9270, "Other expenses," on page 1. Recapture and terminal loss do not apply to a Class 10.1 property. For more information, read Chapter 4 of the Business and Professional Income guide Column 6: Adjustment for current-year additions (one-half multiplied by (column 3 minus column 4)). If negative, enter "0" ^ Column 7: Base amount for CCA (column 5 minus column 6) ^ Column 8: Rate (%) ^ Column 9: CCA for the year (column 7 multiplied by column 8 or an adjusted amount) ^ Column 10: UCC at the end of the year (column 5 minus column 9) ^ Total CCA claim for the year (enter this amount, minus any personal part and any CCA for business-use-of-home expenses, on line 9936 on page 1**) (add all the amounts in column 9) ^ ** For information on the CCA for "Calculation of business-use-of-home expenses" read Chapter 4 - Special Situations in the Business and Professional Income guide *** Transcriber's Note: In print, Areas B to E is in a columnar format (5 columns) with the possibility of 2 entry lines for each column. Enter as many lines as necessary for the following. *** Area B - Details of equipment additions in the year Column 1: Class number ^ Column 2: Property details ^ Column 3: Total cost ^ Column 4: Personal part (if applicable) ^ Column 5: Business part (column 3 minus column 4) ^ Line 9925: Total equipment additions in the year (add all the amounts in column 5) ^ Area C - Details of building additions in the year Column 1: Class number ^ Column 2: Property details ^ Column 3: Total cost ^ Column 4: Personal part (if applicable) ^ Column 5: Business part (column 3 minus column 4) ^ Line 9927: Total building additions in the year (add all the amounts in column 5) ^ Area D - Details of equipment dispositions in the year Column 1: Class number ^ Column 2: Property details ^ Column 3: Proceeds of disposition (should not be more than the capital cost) ^ Column 4: Personal part (if applicable) ^ Column 5: Business part (column 3 minus column 4) ^ Line 9926: Total equipment dispositions in the year (add all the amounts in column 5) ^ Note: If you disposed of property from your business in the year, see Chapter 4 in the Business and Professional Income guide for information about your proceeds of disposition. Area E - Details of building dispositions in the year Column 1: Class number ^ Column 2: Property details ^ Column 3: Proceeds of disposition (should not be more than the capital cost) ^ Column 4: Personal part (if applicable) ^ Column 5: Business part (column 3 minus column 4) ^ Line 9928: Total building dispositions in the year (add all the amounts in column 5) ^ Note: If you disposed of property from your business in the year, see Chapter 4 in the Business and Professional Income guide for information about your proceeds of disposition. Area F - Details of land additions and dispositions in the year Line 9923: Total cost of all land additions in the year ^ Line 9924: Total proceeds from all land dispositions in the year ^ Note: You cannot claim capital cost allowance on land. T2124 E (05) (Page 4 of 4) Chart A - Motor vehicle expenses Line 1: Enter the kilometres you drove in the tax year to earn business income ^ Line 2: Enter the total kilometres you drove in the tax year ^ Line 3: Fuel and oil ^ Line 4: Interest (see Chart B below) ^ Line 5: Insurance ^ Line 6: Licence and registration ^ Line 7: Maintenance and repairs ^ Line 8: Leasing (see Chart C below) ^ Line 9: Other expenses (please specify) ^ Line 10: Other expenses (please specify) ^ Line 11: Total motor vehicle expenses: Add lines 3 to 10 ^ Line 12: Business-use part:(line 1 divided by line 2) multiplied by line 11 = $ ^ Line 13: Business parking fees ^ Line 14: Supplementary Business Insurance ^ Line 15: Add lines 12, 13, and 14 ^ Allowable motor vehicle expenses: Enter the amount of line 15 at line 9281 on page 1. Note: You can claim CCA on motor vehicles in Area A on page 3. Chart B - Available interest expense for passenger vehicles Line A: Total interest payable (accrual method) or paid (cash method) in the fiscal period ^ Line B: (* enter $10 or $8.33) multiplied by the number of days in the fiscal period for which interest was payable (accrual method) or paid (cash method) ^ * For passenger vehicles bought: - from September 1, 1989, to December 31, 1996, and from 2001 to 2005, use $10; - from 1997 to 2000, use $8.33 Available interest expense: amount A or B, whichever is less (enter this amount on line 4 of Chart A) $ ^ Chart C - Eligible leasing costs for passenger vehicles Line 1: Total lease charges incurred in your 2005 fiscal period for the vehicle ^ Line 2: Total lease payments deducted before your 2005 fiscal period for the vehicle ^ Line 3: Total number of days the vehicle was leased in your 2005 and previous fiscal periods ^ Line 4: Manufacturer's list price ^ Line 5: The amount on line 4 or ($35,294* + GST and PST, or HST on $35,294), whichever is more multiplied by 85% = $ ^ Line 6: [($800* + GST and PST, or HST on $800) multiplied by line 3] divided by 30 minus line 2 = ^ Line 7: [($30,000* + GST and PST, or HST on $30,000) multiplied by line 1] divided by line 5 = ^ Eligible leasing cost: line 6 or 7, whichever is less $ ^ (Enter this amount on line 8 of Chart A) * If you entered into a lease agreement before January 1, 2001, make the following changes to the chart: - for line 5, replace $35,294 with: After 1990 and before 1997 $28,235; 1997 $29,412; 1998 and 1999 $30,588; 2000 $31,765 - for line 6, replace $800 with: After 1990 and before 1997 $650; 1997 $550; 1998 and 1999 $650; 2000 $700 - for line 7, replace $30,000 with: After 1990 and before 1997 $24,000; 1997 $25,000; 1998 and 1999 $26,000; 2000 $27,000