Sale of a sole proprietorship - Goodwill
Your 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/tax/businesses/topics/changes-your-business/selling-a-business.html
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002.html
For Quebec résidents
https://www.revenuquebec.ca/en/citizens/income-tax-return/completing-your-income-tax-return/completing-your-income-tax-return/line-by-line-help/96-to-164-total-income/line-139/
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
