Declare loss in Personal tax due to Loss in Business

Question

2471 viewsMarch 13, 2018

0

Gus (anonymous) Posted March 12, 2018

Hi Allan,

I have been following your youtube channel for some time now and I really enjoyed your presentation and valuable information given.

Just have quick question hope you can help: I live in Alberta and set up an Alberta incorporation in 2017. I put some money from personal account into my incorporation but then I lose them when I was doing the business. I know I can declare a loss when filing for my corp tax, but can I declare loss as well when I file for my personal tax?
What will be your suggestion so I can pay less tax.

Thank you in advance for your help,
Gus

1 Answer

score 0 · Answer 1 · 2018-03-13T19:30:00+00:00

Hi Gus, you can claim a capital loss for the unpaid balance of the shareholder loan owing to you, if the company cannot repay you. To do so, attach an election form [50(1)] with your personal tax return for the tax year during which the debt became bad.

Declare loss in Personal tax due to Loss in Business

1 Answer

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