What happens to business use of home expenses when no income/expenses reported in the year?

[roswagler]

We have operated a small business out of our home the last number of years, however last year we were unable to do so and are not sure if/when we will be able to run it again. For filing our income taxes, can we treat it as it's still open but just not input any income/expenses? And will the business use of home expenses continue to carryforward? Also, if we were to start a different business from our home, would we need to start fresh with the business use of home expenses?

[ncalder · Accepted solution]

Ros:

First a CRA-filing answer: If existing business is dormant, it's tough to claim any out-of-pocket costs as expenses of the current year unless you're likely to be restarting a home-based business in the near future.  Sounds to me like you should file no-income, no-expenses for 2014. But you can offset a business loss if you're going to be in business again soon.

When you start a new/same business in the future, you can continue the prior claims (but watch out - CRA are cracking down on claiming "home" costs as expenses - need to have exclusive room, diary of meetings therein, etc)

If however, your question is whether TT will remember how you calculate the "business use of home expenses", someone else will have to answer. (Me, I doubt it).