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Where can I put pre-operational expenses for my business?
I started a partnership in 2022 and would like to include my startup costs that predate when I registered but I had started conducting business prior.
April 22, 2023
9:42 PM
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Self-employed
If you are self-employed, then you started doing business when you started doing business, not when you registered a name or for a GST/HST number.
That having been said, you may not be able to expense all startup costs. If you took a knitting course to learn to knit so you could sell handknit sweaters, then that would be considered a capital cost that you would not be able to claim as an expense. But, If you bought a sewing machine to make the sweaters, you might put that as a class 8 CCA asset, while knitting needles might be expensed on Line 8811 – Office stationery and supplies.
If your business is incorporated, then you can't put startup costs on your personal tax return.
April 26, 2023
3:54 PM