Sale of a sole proprietorship - GoodwillYour question is as follows: "How do I register the sale of my business?"
In addition, you have ticked "Final Year of operations".
NOTE: The company is not incorporated, you were a self-employed person.
You may have stopped all activities or sold your business.
If it is a sale, you have sold the goodwill of your business, plus the inventory of your business. In addition, you may never have thought of claiming depreciation for the goodwill of your business.
We suggest you consult the following links:
For the CRA:
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002.html
For Quebec résidents
To enter the sale of your business, please follow the procedure below.
1. In the "Self-employment income" section, go to the "CCA" subheading and choose from the page that appears "Class 14.1 - 7% (eligible capital property before 2017 - other)".
2. For the line "Opening balance of undepreciated capital cost", enter the capital cost at the beginning of the year. If you have never deducted depreciation on your business, enter the value of the goodwill of your business.
3. For the line "Proceeds of disposition of an asset", enter the value of the sale of your goodwill.
4. For the line "ACB of the disposition" if you have estimated the cost of the goodwill, please enter it where the cost you paid when acquiring this property.
In addition, you must enter other relevant information.
Federal Schedule 3 and Form T2125 will be generated by the program, as well as Schedule G and Form TP-80 for residents of Quebec.
ID: 20191216093759DE.xml
Webpage: KPA320-20191216093759DE.htm