Hi guys
Last year my Inc registered no income (I switched to full time employment for a year)
I am planning to resume my business activities as a side business this year and I need to submit my taxes for the previous year
I paid from my own pocket for mandatory car maintenance (the car is still under warranty) and then there is the CCA for this car
Can I deduct these if we had no income for last year?
If the answer is yes I will register these as Car expenses but the Assets=Liability+Equity does not match
How do balance this equation ? It seems that Amount due to shareholders is not the right option.
We also paid back a loan from the company and we overpaid like 10K. How do we register this transaction and take the money back?
Hi, thank you for using Intuit TurboTax Community
A corporation must file a tax return every year. Expenses would be recorded on s125, the income statement. The net profit or loss would then transfers to s100. This means that a balance sheet and income statement must be completed from the company books before preparing the T2. CCA can be claimed for the year or the CCA for the year can be overridden to zero. What expenses to claim and when are accounting decisions that must be made before starting the T2 preparation.
Maybe others who have had this scenario in the past can add to this
Hope this helps
So if I have no income and no other expenses and on Car CCA...does this mean I can withdraw money out of the company , the equivalent of the CCA depreciation ?
Hi, thank you for using Intuit TurboTax Community
Expenses such as CCA reduce net profit and result in a non-capital loss if expenses are greater than revenue. Therefore expenses do not generate cash. Any non-capital loss can be carried back three years or carried forward.
Hope this helps