Is S50(1)(a) business investment loss for small business corporations only? Where do you include debt write-offs for large corporations? (CRA folio refers to small business corporations but I didn’t see that in the ITA.)
You will have to look at your file details to determine the complete and exact facts of what it is exactly you are dealing with.
With those facts, check for:
Business Investment Loss - defined in S39(1)(c ) .
(S39(1)(c )(iii) and (iv) refers to SBC and CCPC respectively)
And then:
IF it meets that definition, you might find that it possibly could be a Capital Loss pursuant to S38 (b) - (or even abil S38(c ))
(CRA seems to audit 100% of the nitty gritty detail requirements of all S38(c ) claims, so working papers should include copies of each and every one of those required elements).
Thank you for the redirect. Turns out it’s not a Business Investment Loss. It’s a Capital Debt Established to be a Bad Debt. (Crypto sales proceeds not received due to the exchange going bankrupt.) Most likely to be audited due to the size > $100K.
Crypto exchange Quadriga was a fraud and founder was running Ponzi scheme, OSC report finds
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Amazing finding!