Borrowed money for legal and accounting advise to ...
New Member

Borrowed money for legal and accounting advise to start two companies. What can I personally claim?

In the spring of 2014 I borrowed $3,000 and paid $2,000 to a lawyer and $1,000 to an accountant to set up 2 numbered companies and a family trust. (Numbers for demonstration purposes only). Neither company or family trust paid me anything, and are sitting idle. Am I able to claim the $3,000 as an expense on my personal tax? If so, where? What about the interest that I've paid on the money borrowed?

This widget could not be displayed.
New Member

Credits and deductions

You cannot claim these expenses on your personal tax.  These are shareholder loans to your companies, and are outstanding debts of your companies.  Keep in mind that the companies must file corporation income tax each year as well as annual reports or they may be dissolved.  The interest paid also gets added to the shareholder loans which should be apportioned to each corporation. The costs of incorporation are added to the schedule 10s in the T2s and are depreciated rather than written off.

View solution in original post

This widget could not be displayed.
New Member

Credits and deductions

Excellent answer. Thank you.
This widget could not be displayed.
New Member

Credits and deductions

🙂
This widget could not be displayed.