I incurred expenses before the business started. Can I claim these
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I incurred expenses before the business started. Can I claim these

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

This topic contains 1 reply, has 1 voice, and was last updated by Avatar of Robert Robert 7 years, 11 months ago.

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  • #5029
    Avatar of Robert
    Robert
    Member

    We have a question from a client:
     
    I just started a business recently, but I incurred business expenses before the business started. Can I claim these on my income tax?

    #5030
    Avatar of Robert
    Robert
    Member

    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.

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