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.
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.