Landing Page Forums Personal and Business Tax Matters Small Business Tax I incurred expenses before the business started. Can I claim these Reply To: I incurred expenses before the business started. Can I claim these

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Robert
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Generally, business expenses can be claimed to the extent that they relate to a business that is already operational. Expenses incurred before a business starts is not considered a business loss or a non-capital loss, and therefore cannot be carried back or forward to offset taxable business income. However, there are certain start-up costs, which can be claimed and deducted over time similar to the concept of the Capital Cost Allowance for capital property. Such start-up costs include expenses of incorporation, reorganization or amalgamation; trademarks, patents, franchises, and licences; and customer lists, among others. These costs are considered to be Eligible Capital Expenditures and a portion is claimed over several taxation years.