Closing My Business
May be a silly question but I can't find the answer on the CRA site.
I have decided to close my sole propieter home based business. I have $4000.00 worth of inventory on hand that I will personally use, and I have $1200.00 worth of capital property (shelves, computer, etc) (never claimed cca against).
How do I enter (adjust) these amounts on my final T2125 form.
Thank you. Harry
The CRA website is large and it is often hard to find what you are looking for.
I went searching under the A to Z index under C for Closing Accounts ... and here are the pages you want to visit:
For closing your CRA accounts try this page:http://www.cra-arc.gc.ca/tx/bsnss/tpcs/lf-vnts/clsccts-eng.html
For deregistering your GST/HST accounts ... it's a bit of a procedure that is explained in this link:http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/bspsbch/cncllng/clsng-eng.htmlYou must file form RC145 Request to close business number accounts.
Due to change-of-use rules, all capital property that has not been sold is deemed to have been disposed at fair market value (FMV) before you close your accounts and you self assess GST on the deemed FMV ... because some of the input tax credits granted when you purchased the assets for business use are recaptured.
Self assessed amounts are reported on Line 103 of your GST/HST return.
Here is the link to the change-in-use rules. You want from commercial to non-commercial use
I hope this helps you out Harry. If there is anything you don't understand, just post back.