Hi, I bought stuff for my new business in 2017 but will actually start my business later on 2018. I didn't even register my business yet nor has a name... can I submit those start up costs of 2017 in the 2018 tax , or must I submit them in 2017 although my business is not open yet? I currently don't even know when in 2018 I'll open it and have no name to register it with. But already purchased the start up cost (less than 5k) in 2017. The main issue is i dont have name to register my business yet and i wont open it now, just later on 2018. Then, when should i submit the costs, 2017 or 2018?Thank you.
CRA makes a distinction between "when your business has started" and "when you are officially open." You need to first establish whether your business has started already according to the definition and explanation provided by the CRA. The registration of your business name does not affect the business start date.
To be able to deduct start-up costs, you had to have carried on a business in the fiscal period in which the expense was incurred. Because of this, you have to be very clear about the date your business started.
Establishing whether your business has actually started is not straightforward: https://turbotax.intuit.ca/tips/when-can-i-claim-business-expenses-1213
CRA provides more details and some examples here: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/it364/archived-comm...
If you have in fact started your business, here are some information on claiming business start-up costs: https://turbotax.intuit.ca/tips/deductible-business-start-up-costs-6184 and a small note from CRA: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partners...
Thank you for the reply. I read the links but all examples are within the same year. My case is spread out to 2 years, bought stuff in 2017 and will open in the future in 2018.
I think I complicated my question and I'll try to ask it differently.
If I bought in 2017, my business is not opened , not registered, just in planine stage. Will be open close to end of 2018.
Now, I file the tax under my private name, with sin.
It's going to be small business no employees, just me.
Should I claim the start up costs that bought in 2017, now in my tax under my private name (have no registered business name yet) , or wait till 2018 tax return file and then submit them when my business will be already opened.
Hope my question is less confusing now. Thank you so much.