Part 3 is where your revenue enters Form T2125 — and it's fussier than it looks, because the form makes you start with GST/HST included, then back it out. This guide follows the form's own amount letters. Part of the complete T2125 line-by-line reference; the free generator does this flow for you.
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First fork: business or professional income?
You fill in Part 3A or Part 3B, never both on one form. Professional income is the independent-practice kind — think accountants, doctors, lawyers in their own practice. Everything else (freelancing, contracting, a shop, gig work) is business income. Have both kinds of activity? The CRA requires a separate T2125 for each.
Business income casts a wide net: the guide explicitly includes ridesharing and accommodation sharing, gig platforms, peer-to-peer online sales, and social media influencer activity — including donations, gifts, and tips, and even non-monetary compensation. Barter counts too: goods or services you received instead of money go into sales at their value.
Part 3A — business income, amount by amount
Amount 3A — gross sales, commissions or fees
Including GST/HST collected or collectible. Yes, including — this trips everyone up, because line 8299 later ends up without it. The form wants the all-in number first.
Amount 3B — what comes back out
The GST/HST, provincial sales tax, returns, allowances, discounts, and GST/HST adjustments that were sitting inside amount 3A. Amount 3C is the subtotal after removing them.
Amounts 3D–3F — quick method users only
If you file GST/HST under the quick method, the spread between what you collected (3D) and what you actually remit (3E) is government assistance — amount 3F adds it to income. If you use the regular method, these stay empty.
Amount 3G — adjusted gross sales
3C plus 3F. This is the number that moves to line 8000 in Part 3C.
Part 3B — professional income and the WIP wrinkle
Professionals follow the same shape — amount 3H (gross fees including WIP and GST/HST) minus amount 3I (the taxes, returns and discounts) gives 3J; quick-method amounts 3K–3M mirror 3D–3F; and amount 3N (adjusted professional fees) goes to line 8000.
The wrinkle is work-in-progress: as a professional, your income normally includes the value of services you'd started but hadn't finished providing at year-end. The guide's formula: amounts received this year, plus receivables at year-end, plus closing WIP you haven't billed — minus last year's receivables and minus the WIP you already counted last year.
Part 3C — where gross income is assembled
Line 8000 — adjusted gross sales or fees
Amount 3G (business) or amount 3N (professional) lands here.
Line 8290 — reserves deducted last year
A reserve you deducted last year comes back into income this year. Most freelancers leave this at zero.
Line 8230 — other income
The catch-all the guide fills with examples: bad debts you recovered after writing them off, prizes or vacation trips awarded because of your business, and grants, subsidies or government assistance you can't apply against a specific expense or asset. If assistance relates to a specific expense, you reduce that expense instead of reporting income here.
Line 8299 — gross business or professional income
Line 8000 + line 8290 + line 8230. This is the headline number: it also goes on your tax return — line 13499 for gross business income, line 13699 for gross professional income. Expenses haven't entered the picture yet; that's Part 4.
Part 3D — cost of goods sold (goods businesses only)
Only fill this in if your business buys goods for resale or makes goods for sale — service freelancers skip it entirely.
- Line 8300 — opening inventory and line 8500 — closing inventory: include raw materials, goods in process, and finished goods; opening must equal last year's closing. Artists can elect to value closing inventory at zero.
- Line 8320 — purchases during the year, net of returns, allowances and discounts — and net of anything you took for personal use.
- Line 8340 — direct wage costs: employees who directly make the goods. Never your own pay — a sole proprietor's draws aren't an expense anywhere on this form.
- Line 8360 — subcontracts: outside help hired to work on the goods you sell. Note this line lives here in Part 3D, not among the Part 4 expenses — a service business paying subcontractors typically reports that cost as a Part 4 expense (commonly line 9270, other expenses) instead.
- Line 8519 — gross profit: gross business income minus cost of goods sold.
Let the form fill itself. Enter your income and expenses once — the generator handles the 3A→3G flow, GST/HST exclusion, and every line number.
T2125 Generator → Full line-by-line reference →FAQ
Does line 8299 include GST/HST I collected?
No. GST/HST goes in at amount 3A but is removed at amount 3B, so by the time income reaches line 8299 it's excluded (unless you use the quick method, where the remittance spread is added back as amount 3F).
I have a consulting business and a professional practice. One form?
No — one T2125 per activity. Business income uses Part 3A, professional income uses Part 3B, and the CRA requires a separate form for each business or professional activity.
Do platform tips and influencer gifts count as income?
Yes. The guide explicitly includes gig and sharing-economy activity, peer-to-peer sales, and social media influencer compensation — including donations, gifts, tips, and non-monetary payment.
What is Part 2 (internet business activities)?
A disclosure section: if you earn income from websites, online marketplaces, or ad/affiliate programs, you report how many sites, their addresses, and the approximate percentage of your income they generate.
Follows CRA Guide T4002, Chapter 2 – Income (CRA page dated 2026-04-16; verified 2026-07-02). For planning and organization — not tax, legal, or accounting advice. Confirm with the CRA or a qualified professional before filing.