tax client started new business in 2014. no revenues 2015 & 2016. should he claim expenses & cca in 2016

I have a tax client who started a new business in 2014.  For 2015 & 2016 he has $0 revenue for the business, just $10,000 in expenses & $13,000 in cca to claim.  He also has $157,000 in T4 earnings.  Should I claim any expenses and/or cca for tax year 2016? 


1 person found this helpful

You can claim these expenses, but be prepared to defend them as they are easily challengeable as you have a client who is incurring expenses year after year with no income.  Sounds more like a hobby then an actual business activity.  

Was this answer helpful? Yes No
1 additional answer

No answers have been posted

More Actions

People come to ProFile for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach: