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Self-employment income must be report on the T1 on a T2125 for example. Since there are usually expenses incurred to earn the self-employment income, Canada Revenue Agency (CRA) allows taxpayers to claim the expenses related to earning the income on the T2125. The expenses allowed are described at the following CRA link:
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partners...
CRA will not allow a claim for personal expenses on the t2125. Careful records should be kept so a taxpayer can demonstrate what expenses are relate to business and which are personal.
CRA can request the taxpayer submit documentation for any business related claims for expenses on the t2125.
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