When you're starting a business it seems like there are so many things that you need to know. For instance:
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- How do I find small business start up money?
- Do I need to register a business name?
- Do I need a Business Number and how do I get one if I do?
Do you have a question about starting a business that's not answered in the Starting a Business FAQ? Post it here by clicking on "comments" or post it in the Small Business Canada Forum. (The Forum link takes you to the sign in page as you have to be signed in to post.)
I have been operating a cleaning business for the past 4 years (sole prorietorship)and have made modest income. I am currently starting up an internet business selling vacation packages and expect to have losses for the next couple of years. Can I offset my current losses against prior years business income.
Thanks
Yes, non-capital losses can be used to offset other personal income in any given tax year, can be carried back three years, or carried forward for up to seven years. So you can use your non-capital loss to recover income tax you’ve already paid. I write more about this in Business Losses.
I have been running a vending business as a sole proprietor which is not making any money. Now I wish to close the business. Is there any way I can write off the cost of the machines purchased. I am not sure I will get much if I sell it and there will a loss.
Thank you for your response in advance.
Hmmm…. I would think you should have been writing these over the years through your Capital Cost Allowance. Also, a business loss is not necessarily a bad thing when it comes to income tax. However, I am NOT an accountant or a professional tax preparer and I can’t give advice on specific tax situations. You really should consult a professional about your situation.