I am a sole proprietor with a second well paying job.
There are a few things to consider before you make a large CCA claim on your Sole Proprietorship and generate a Non-Capital Loss from it. CRA will take these things into account if they decide to review your claim and may disallow the claim altogether if you cannot prove your business is legitimate and you have a reasonable expectation of profit.
In addition to having a reasonable expectation of profit, a side business has to be "clearly commercial in nature", as ruled by the courts. For example, suppose you have a full-time job and decide to start a side business offering flight services and to do so you purchase an aircraft. You have few or no customers, little or no revenue, and the aircraft is used mostly for personal transportation, but you claim business expenses and CCA for the aircraft against your other income on your tax return.
In this case, the CRA may disallow your expense claims, given that:
Also see this TurboTax Tip:
https://turbotax.intuit.ca/tips/what-is-a-business-for-tax-purposes-6180
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