topic 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 in Self-employed

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

patricia-gail — Sat, 28 Feb 2026 05:36:22 GMT

Re: 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

Delphision — Sat, 28 Feb 2026 07:12:12 GMT

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.

Re: 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

patricia-gail — Sat, 28 Feb 2026 22:10:28 GMT

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.

Re: How do I report the amount that I sold my sole proprietor business for? My business didn't ha...

TurboTax_Susan — Sun, 01 Mar 2026 20:47:28 GMT

@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/maintain-business/selling-business.html

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.