Artist's Grant

Taxpayer receives Artist’s Grant at the end of year from BC Arts Council, such grant was for the projects start the following year and reasonable eligible expenses to the specific projects will spend in the following year.

Anybody came across this situation? Can I elect to defer such income to the following year and paper file with a short note to elect. The guides are pretty general and no where ITA talks about this. Not like you’re allow to elect to exclude WIP for some professionals, e.g. lawyer, accountant, dentist, doctors.

Hi Gilbert:

I have the same situation with a couple of clients. I usually take a reserve under other expenses in the T2125 in the current year and roll it into the year in which the project costs are incurred.


Quoting “Gilbert Chao via

Hi Gregory -

Thank you!

Is this what you did. Say $20,000 grant you will include on line 130 then risk an amount you EXPECT to spend and claim business loss on line 135. Would that trigger a post-review if the losses is high?


Do NOT use line 130.

The income belongs on a T2125.

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This specific client been re-assessed for unreported T4A. You’re saying the amount to be reported on line 162 knowing the amount was on Box 105 of T4A, not box 20 or 48? Did you have clients being reviewed then be accepted this way?

I didn’t say that you won’t have to deal with CRA on this.

Some educational institutions are still use box 28 for scholarships instead of Box 105.

The Alberta Government uses Box 28 to report paying teachers for marking the government mandated exams. That is clearly employment income but I have had to fight that battle to correctly report it as RRSP room and the Alberta Family Employment Tax Credit were effected by the misrepresentation.

Research Grants should be in in Box 104 which reports to line 10400. This assumes it is employment related and would then require a T2200 to claim the related expenses.

Work with the client AND the party which prepared the form, (not that the government of Alberta is listening). Try to get the form correct to represent the true nature of the grant.

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