Business Income for PGP 2020

[PGP2020]

[previous post got removed]

Hey guys I was selected to sponsor my parents this year, I am about to submit my application but something just caught my attention - the income requirement.

In 2019 my gross sales were $62,126.06 (Line 13499); I subtracted my business expenses and arrived at the following amount - $52,589 (Line 15000)

So far so good, right?

Now looking at my NOA:

15000 $52,589
Deductions from total income (CPP) $2,560
Net income $50,029

Whaaaat?!

Am I going to pass fin assessment or I wasted my spot in the lottery?! I want to sponsor 2 people (no dependents, I am alone) so I needed to make at least $50,414 in 2019

 

[canuck78]

Are those your business taxes or your personal taxes. You said sales and not income. What will be looked at is line 150 on your personal income taxes minus EI (not maternity or disability) except this year.

 

[PGP2020]

Are those your business taxes or your personal taxes. You said sales and not income. What will be looked at is line 150 on your personal income taxes minus EI (not maternity or disability) except this year.

Not sales was not correct on my part, That amount is my gross business income ($62,126.06) and my Total Income(15000)/Net income(13500) is the same $52,589

But regardless of that if CPP doesn't have to be deducted during their assessment and I have nothing else to deduct from it (No EI, Old age security or any other social assistance). Seems like I am in the clear?

 

[canuck78]

Not sales was not correct on my part, That amount is my gross business income ($62,126.06) and my Total Income(15000)/Net income(13500) is the same $52,589

But regardless of that if CPP doesn't have to be deducted during their assessment and I have nothing else to deduct from it (No EI, Old age security or any other social assistance). Seems like I am in the clear?

Business income or your personal income?

What is on line 150 of your personal income tax.

 

[PGP2020]

Business income or your personal income?

What is on line 150 of your personal income tax.

what is personal income? Do you mean Employment Income (as in t4)? Not sure if I follow you.

It goes like this:

12100 Interest or other investment income $317
13499 Gross business income $62126
13500 Net business income $50722
15000 Total Income $51089

 

[canuck78]

what is personal income? Do you mean Employment Income (as in t4)? Not sure if I follow you.

It goes like this:

12100 Interest or other investment income $317
13499 Gross business income $62126
13500 Net business income $50722
15000 Total Income $51089

You keep on referring to business income but PGP is based on your personal income.

 

[PGP2020]

You keep on referring to business income but PGP is based on your personal income.

so self employed people can't apply?

 

[YVR123]

so self employed people can't apply?

self employed file their personal tax return too.

 

[YVR123]

From some random tax info site:

The type of income tax returns you have to file will depend on whether your business is incorporated. If you have an incorporated business, you must complete a corporate (T2) tax return for the business, and you must also complete a separate personal (T1) tax return.

.....

If your business is not incorporated, then you only have to file a personal (T1) tax return.

 

[canuck78]

so self employed people can't apply?

Perhaps you are mean your person income from being self-employed.