Your gross income is all of the money you earn from your business. Your net income is this amount minus your expenses.
For example, if you own a restaurant, payments from customers constitute your gross income. To determine your net income, you must subtract salaries, utilities, food costs, rent and other expenses.
When completing your income tax return, note your net business income on lines 13500 to 14300 of your T1 form. Those lines will generate from the entries you have applied on the T2125 form (Statement of Business or Professional Activities) depending on whether it is, Commission, Professional, Business or another type of business income.
These amounts are taken into account when calculating your taxable income on your income tax return.
Report your gross income on lines 13499 to 14299, depending on the type of income as mentioned above. These amounts are primarily reported for informational purposes and are not taken into account when calculating your taxable income on your federal return.
