Running a money-losing business doesn't always mean you can claim tax losses

  • 📰 financialpost
  • ⏱ Reading Time:
  • 68 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 31%
  • Publisher: 85%

대한민국 뉴스 뉴스

대한민국 최근 뉴스,대한민국 헤드 라인

To claim a business tax loss with the CRA, you must have a legitimate business, run in a commercial manner with a view to a profit. Read on.

The taxpayer, when asked what he did to help make the website profitable, said he planned to modify the website to allow it to be viewed on social media and mobile devices, and that he “increased his advertising.” In addition, he introduced some vitamin products in 2011 to the website in a multi-level marketing scheme that generated a commission loss of $2,186 that year.

The taxpayer also ran a painting and cleaning activities business. Asked by the CRA why he started that business, he responded he had “some free time” on the weekends. The taxpayer conceded his painting and cleaning activities were not very active, and they ended in 2010.that established the test to determine whether or not a taxpayer has a “source of income.” This is essential because to deduct a business loss, you must have a source of income.

In this case, the judge said both taxpayer activities had personal elements. Because his children were deeply involved in helping the website business, their activities offered the taxpayer’s family an opportunity to spend time together. And because his painting and cleaning activities were intended to occupy the taxpayer’s free time, they were personal as well. In the end, there was no evidence that either activity was conducted with sufficient commerciality to constitute a source of income.

The taxpayer also tried to argue that the CRA wasn’t entitled to reassess his 2008 taxation year because it was beyond the normal three-year reassessment period. To do so, the CRA must demonstrate, on a balance of probabilities, that a taxpayer made a misrepresentation attributable to “neglect, carelessness or wilful default or committed fraud” in filing his tax return.Article content

이 소식을 빠르게 읽을 수 있도록 요약했습니다. 뉴스에 관심이 있으시면 여기에서 전문을 읽으실 수 있습니다. 더 많은 것을 읽으십시오:

 /  🏆 7. in KR
 

귀하의 의견에 감사드립니다. 귀하의 의견은 검토 후 게시됩니다.

대한민국 최근 뉴스, 대한민국 헤드 라인

Similar News:다른 뉴스 소스에서 수집한 이와 유사한 뉴스 기사를 읽을 수도 있습니다.

Running a money-losing business doesn't always mean you can claim tax lossesTo claim a business tax loss with the CRA, you must have a legitimate business, run in a commercial manner with a view to a profit. Read on.
출처: fpinvesting - 🏆 43. / 63 더 많은 것을 읽으십시오 »

Running a money-losing business doesn't always mean you can claim tax lossesIt’s not easy running a small business, especially in the early years. Whether a business will ultimately become profitable, producing income that will ...
출처: SaltWire Network - 🏆 45. / 63 더 많은 것을 읽으십시오 »