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11-26-2009 04:40 PM |
Quote:
Originally Posted by ManOfBusiness
(Post 16589432)
that would help...im from Canada
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I'm not an expert, so talk to an accountant, but my understanding is that you have to convince them that there is a reasonable expectation of profit, if you just show losses and try to use those losses to lower your tax burden in your employment income they are likely to disallow it.
If you only show losses for a number of years as well, they are likely to not allow the deductions.
But if you are already showing a profit, for sure the expenses can be used as deductions on that revenue, "registering as a business" does not make any difference. Be aware that there are GST requirements after a certain revenue level as well.
again, the above are just my understanding in my own business situations of the laws and should not be taken as advice, go to an accountant
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