- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
How do I report the amount that I sold my sole proprietor business for? My business didn't have any income in 2025 as I sold it in January 2025
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Self-employed
A sole proprietorship would normally be sales of assets and inventory, and often a "goodwill" portion to account for the difference in value. It would be reported on the T2125. Office equipment, if included would be reported as inventory rather than assets, where CCA is not considered.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Self-employed
It was a food business so there was no assets or office equipment and very limited inventory. Where do I put the amount I sold the business for T2125? I am not sure what you mean by "goodwill" portion?
Thank you.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Self-employed
@patricia-gail You would enter your business income & expenses in the self-employment section. If you closed the business, then you would say Yes when it asks if it was your final year.
This CRA webpage has more information on selling a business: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/business-registration/maintai...
Any money that you were paid that wasn't for inventory or fixed assets would be considered goodwill. Goodwill itself is considered like a fixed asset, so to enter it, you would put it in the CCA section as Class 14.1. For the opening balance of undepreciated capital cost enter the value of the goodwill of your business. For the proceeds of disposition enter the value of the sale of your goodwill.
