Home Economy Are business expenses still tax deductible if you no longer operate said...

Are business expenses still tax deductible if you no longer operate said business?

19
0
SHARE

The Canada Revenue Agency disallowed a retired Nova Scotia lawyer’s fees for storing files and the taxpayer took the case to the Tax Court.

One of the advantages of being self-employed is the ability to write off a variety of business expenses against your income. In some cases, those expenses may even lead to a loss that may be used against other income of the current year or carried back up to three years. That loss can also be carried forward for use against future income for up to 20 years.

But are the expenses from a business you no longer operate and from which you have no expectation of future profits still tax deductible?

That issue came before the Tax Court in a recent case involving a retired Nova Scotia lawyer who deducted professional dues of $57 and file storage fees of $1,200 as expenses on her 2015 tax return. The Canada Revenue Agency allowed her annual dues, but it disallowed her storage fees.

LEAVE A REPLY

Please enter your comment!
Please enter your name here