T2042 Report

The T2042 report is the Statement of Farming Activities for producers who do not participate in AgriStability.  This form is used to report your farming income and expenses for tax purposes.

Before generating your T2042, you will want to make sure that your accounts are set up correctly.  Click Chart of Accounts on the left navigation panel.

Focus on the set up of your income and expense accounts.  You can either filter your accounts using the dropdown on the top or scroll down to the appropriate section.

Click one of your accounts to open the edit screen.  Ensure that the T2042 field has the correct line number for the type of income or expense you are dealing with.

These lines numbers are prescribed by CRA, and you cannot add your own lines.  Once you have selected the line number, save the account.  Continue until all the necessary accounts are coded with the correct line number.

Click Reports on the left navigation panel.

Click T2042 Statement of Farming Activities from the Tax information section.

The report will open, consolidating all your information into the line numbers you had setup.

You can switch between accrual or cash using the option at the top of the report.

To include an optional or mandatory inventory adjustment for the year, click Set optional/mandatory inventory.

Set your numbers and save so they appear on the report.

Last updated on August 18, 2021 by FCC AgExpert