I have a few questions regarding filing my income tax. I am currently employed and also have a corporation I set-up last year. The company hasn't had any business income but I have made some expenses in the course of setting things up.

My Questions:

1. Since the company hasn't had any income, I will be filing a T2-Short Retrun for this year. Do I claim these expenses on this return? How do I get a tax benefit for the same since I don't have any income and haven't paid any taxes for the business?

2. Is it possible to claim these expenses on my personal income tax return? If yes, how?

3. Can I claim "Employee Expenses" on my personal tax return by putting my company as the Employer? What are the pros/cons of doing so?

4. Any other advice / insight will be much appreciated.

Thanks

DT

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DesiTiger,
I am also in a similar situation except that I have earned a small amount of money through the incorporation. I am also looking for (legal) ideas of maximising my write off's through the business incorporation account. The thread in which I discussed this recently can be found in : http://www.canadiandesi.ca/read.php?TID=19932

Please share your experiences once you get the right advise.
TK A

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Quote:

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Originally posted by DesiTiger

I have a few questions regarding filing my income tax. I am currently employed and also have a corporation I set-up last year. The company hasn't had any business income but I have made some expenses in the course of setting things up.

My Questions:

1. Since the company hasn't had any income, I will be filing a T2-Short Retrun for this year. Do I claim these expenses on this return? How do I get a tax benefit for the same since I don't have any income and haven't paid any taxes for the business?

File corporate tax return with a loss. Loss will be set off in future years.

2. Is it possible to claim these expenses on my personal income tax return? If yes, how?

No, any expense incurred by a corporation can not be claimed in a personal tax return.

3. Can I claim "Employee Expenses" on my personal tax return by putting my company as the Employer? What are the pros/cons of doing so?

No, If corporation did not have any revenue and practically never worked (sale, etc) it is illogical to have an employee who incurred expenses for carrying out corporation work.

4. Any other advice / insight will be much appreciated.

File a tax return for the corporation, claim expenses you incurred for corporation business and declare loss , if any.

Thanks

DT

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