T2125 Prep for 2025: A Sole Proprietor’s Guide to Stress-Free Tax Filing

Written By Michael Martin

Professional support for Kamloops businesses and self-employed individuals

If you are a sole proprietor in British Columbia, preparing Form T2125 correctly is essential to filing your 2025 personal tax return. I’m Michael Martin, a Kamloops-based CPA and licensed sole practitioner. I help self-employed professionals file with confidence, reduce audit risk, and stay compliant with CRA expectations.

Whether you operate a consulting practice, creative business, or side hustle, I offer personalized support to simplify your tax filing and protect your bottom line.

What Is Form T2125 and Why It Matters

Form T2125, the Statement of Business or Professional Activities, is used to report self-employment income and expenses on your T1 return. Each distinct business activity requires its own form. Accuracy and proper categorization are critical to avoid reassessments or penalties.

I help you:

  • Identify which activities require separate reporting

  • Organize income and expenses into CRA-compliant categories

  • Avoid common errors that trigger audits

Key Deadlines for 2025

  • Payment deadline: April 30, 2026

  • Filing deadline: June 15, 2026 (for self-employed individuals and their spouses)

I ensure your filings are prepared early, with time to review and optimize your tax position.

What You Can Deduct

I help you track and claim eligible expenses, including:

  • Home office costs based on square footage or actual use

  • Vehicle expenses including logbook, fuel, insurance, and repairs

  • Professional fees, advertising, supplies, and meals (subject to CRA limits)

  • Capital cost allowance (CCA) for depreciable assets

Documentation That Protects You

CRA expects organized records. I provide:

  • Branded checklists to ensure nothing is missed

  • Guidance on digital and physical documentation habits

  • Support for storing receipts and invoices in CRA-acceptable formats

Avoid These Common Mistakes

I help you steer clear of:

  • Claiming personal expenses as business deductions

  • Forgetting to report cash or barter income

  • Misclassifying capital purchases as current expenses

Let’s Make Tax Season Simple

If you are a sole proprietor looking for a stress-free way to prepare Form T2125, I offer remote-first, personalized support across BC. In-person consultations are available in Kamloops by appointment.

Contact me today to get started. Let’s make your 2025 filing accurate, compliant, and easy to manage.

Michael Martin
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