where does a person claim cash overages/shortages on a tax return (T2125)?

They have an account on their income and expense statement showing cash overages/shortages.  For 2015 they have an overage.  Do I claim this as income?  They have the account uner "General &  Administrative Expense" on the income statement.

Answer

Hi Radar,

Personal opinion, but the best way of getting your answer on this would be to discuss the nature of the account balance, as well as the transactions which made it with your client.

Once you have a more clear understanding on how this balance was created, and its significance, the appropriate reporting for tax purposes will likely be clear.

Best,

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