Hello, some of my clients received $10,000 or more and I was wondering if the Ontario Small Business Support Grant was taxable. Grants usually are taxable but I was wondering, since these were given in extraordinary circumstances, if they had to be declared. If yes; do we just report it on the T2125 under part 3C as "Other Income’. Thanks
I couldn’t find anything in my research that suggested these were tax free grants. I have included them as income related to government grant or subsidies.
Gregory Marko PEng, MBA, CPA CMA
P:416.527.4431 | F:416.850.4600
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I sent an email to the Ontario Small Business Support group and they said to ask CRA; called CRA and they said to contact Ontario. I know that grants are usually taxable…but nothing is to be found that specifically talks about this.
Having a conversation with a client about this…she was told that it would not be taxable. Before this turns into an argument does someone have something to show that it is in fact taxable.
Please:-)
Provincial Grants e.g., the Ontario Small Business Support Grant and the NB Small Business Recovery Grants – are taxable income when received (hits the account) and should be reported on the corporation’s tax return as a grant/subsidy.
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