T2125 - Website Expenses for Self-Employment | Income tax filing | Discussion forum

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T2125 - Website Expenses for Self-Employment
September 21, 2022
4:59 pm
Forum Posts: 1
Member Since:
September 21, 2022
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A few questions for people who are familiar with Self-Employment T2125 forms:

1) Do website expenses (domain, service plan fees from providers like squarespace) count as advertising (line 8521) or Other Expenses (line 9270)? The website is only for advertising purposes and I haven't sold anything on it nor does it have any 3rd-party ads.

2) If the plans are paid for several years at a time, should I divide the total amount by the number of months I have used the website? For example, if I created the website this year and have only used it for 4 months, should I just enter the amount I calculated for these 4 months?

3) Should the amount entered be before or after GST?

I apologize for the wordiness...

Thanks in advance! sf-smile

September 21, 2022
5:42 pm
Forum Posts: 3797
Member Since:
September 11, 2013
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1) Guide T4002 has some info that might help you determine what line to put certain expenses on.
2) Sounds like you have to determine if these are capital (amortized over years) or current expenses (deducted in year incurred), T4002 has some info on that too.
3) If you're HST-registered and eligible to claim back the HST paid on expenses, either actual or via the reduced remittance rates using the Quick Method, then before HST. If you're not HST-registered or otherwise ineligible to claim back HST paid on expenses then your expense amount is the after tax (HST-included) cost.

I'm no expert, these are my unprofessional opinions, you may want to seek accounting advice if the amounts are worth it.

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