If you prepare the return of a taxpayer who reports income from self-employment or rental operations, you must submit forms that contain the selected financial data (SFD). This information comes from the self-employment statement or rental income statement included in the return; Form TL2, Claim for Meals and Lodging Expenses, Form T777, Statement of Employment Expenses, Form T2091, Designation of a Property as a Principal Residence by an Individual (Other than a Personal Trust, and Form T1255, Designation of a Property as Principal Residence by the Legal Representative of a Deceased Individual, as well as the T5013 slips in the case of partnership business income.
If you have selected the return for EFILE, a Selected Financial Data Record (SFD) (Jump Code: SFD) form will be created for each self-employment statement or rental income statement or T5013 slip in the return. An SFD (T777 and TL2) Selected Financial Data Record (Jump Code: SFD T777 TL2) form will be created for each T777 and TL2 form. An SFD (T2091 or T1255) Selected Financial Data Record (Jump Code: SFD T2091) form will be created for each T2091 or T1255 form. You are not required to enter any data in the SFD forms.
To be eligible for EFILE, you are limited to a combination of 12 self-employment/rental, TL2 forms, T777 forms, T2091 forms, T1255 forms, T1273 forms or T5013 statements.
The SFD can only be correctly updated using the CRA and RQ forms provided in the program (e.g.: T776 and TP-80). Even if you do not normally complete any of these forms (i.e. you enter self-employment income directly in the federal return and attach the financial statements to the return), you must provide the required information in order for the return to be transmitted electronically.
Information required
The CRA requires certain information that is usually not included in a self-employment or rental statement: i.e. the NAICS code and balance sheet information.
NAICS code
Entering a North American Industry Classification (NAICS) code is mandatory and is unique to electronic transmission. You must select the relevant code in the self-employment statement or T5013 slip. For rental statements, the program automatically enters the correct NAICS code in the SFD. If an NAICS code is not entered, the program will not allow the return to be transmitted.
Balance Sheet Information
Certain balance sheet information and data on capital purchases are also required for transmission purposes. Some optional information is also required. Both the required and optional information is entered at the bottom of the appropriate self-employment or rental statement.