Tax Deadlines For Sole Proprietors

Sole Proprietorships are the simplest kind of business structure since they have not been incorporated and are owned by one individual and the business does not have separate legal status. This individual can solely make decisions and also receives all the profits that are earned. But on the other side, they are also responsibility for all of the losses and assume all the risks of the company which can extend beyond to the individual’s personal property and assets. Business Income is reported on Form T2125 – Statement of Business or Professional Activities which is then reported on the taxpayer’s personal T1 income tax return along with their personal T1 income tax return.

The deadline for the 2022 year, T1 and GST return filing for self-employed individuals is June 15, 2023, but the tax balance is due on April 30, 2023.

Expenses incurred under a Sole Proprietorship can be deducted from the business income. Business expenses included supplies, advertising, rent, meals, fees and licensing, meals, and entertainment etc. Rental Income can also be earned when the sole proprietor rents out space in their property and provides basic services such as heat, light or parking. But if further services are provided, such as cleaning or security this could then be considered as Business Income.

Rental Income can also be earned when the sole proprietor rents out space in their property and provides basic services such as heat, light or parking. But if further services are provided, such as cleaning or security this could then be considered Business Income.