BC small business grants T4a Box 105

Hi Everyone,

How are you guys dealing with BC small business grants T4A? One of my client received $15,000 in BC small business recovery grant - is it taxable? Can he claim those expenses against this income that he received grant for.

Thank you for your help.

Yes, this grant is taxable. Your client can claim all business expenses as normal.

If it’s a T4a, if a sole proprietor received the grant, I wonder if the T4a is going to be issued to the business or the individual,

Thank you for your response.

Yea, It is on Individual’s name as he is self-employed. Its Box 105 on T4A and I recorded as other awards (taxable).

I think you have to put it under T2125,

Thanks, Yea you are correct

But then there will be CPP payable as well

It doesn’t go on his T2125. It is not business income. He can still claim all his expenses of doing business, if that results in a business loss it will reduce his income from other sources.

I am not sure about individual, but I have few clients, received the T4a for their corporation, and the grant, is basically money given by the government to spend on business to boost revenue, so they must have a budget to spend them all for the business, so I would think it’s either added to revenue or reduce the expenses just like the CEWS.

But the T4A has been issued to his GST business number not on his SIN number

Missed that it had the B/N, then for sure it goes on the T2125

image001.jpg