# Election under subsection 12(2.2) of the ITA for CEBA forgivable portion

**URL:** <https://www.protaxcommunity.com/t/election-under-subsection-12-2-2-of-the-ita-for-ceba-forgivable-portion/4866>\
**Category:** T2\
**Created:** [October 6, 2021, 3:03pm UTC](https://www.protaxcommunity.com/t/election-under-subsection-12-2-2-of-the-ita-for-ceba-forgivable-portion/4866 "2021-10-06T15:03:37Z")\
**Posts on this page:** 3\
**Page:** 1

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**Author:** ![niceday](https://avatars.discourse-cdn.com/v4/letter/n/ce7236/32.png) [@niceday](https://www.protaxcommunity.com/u/niceday)\
**Post date:** [October 6, 2021, 3:03pm UTC](https://www.protaxcommunity.com/t/election-under-subsection-12-2-2-of-the-ita-for-ceba-forgivable-portion/4866/1 "2021-10-06T15:03:37Z")

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Hi , Anyone has the experience of making Election under subsection 12(2.2) of the ITA for CEBA Loan forgivable portion? ( To avoid the $10,000 income inclusion of the forgivable portion of the $40,000 CEBA Loan received in FY. 2020, by reducing expenses by up to the CEBA loan forgivable portion of $10,000 accordingly in FY.2021). Appreciate any comments.

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**Author:** ![Nezzer](https://sea2.discourse-cdn.com/flex016/user_avatar/www.protaxcommunity.com/nezzer/32/3845_2.png) [@Nezzer](https://www.protaxcommunity.com/u/Nezzer)\
**Post date:** [October 6, 2021, 7:15pm UTC](https://www.protaxcommunity.com/t/election-under-subsection-12-2-2-of-the-ita-for-ceba-forgivable-portion/4866/2 "2021-10-06T19:15:06Z")

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I have not. But, it seems like a more difficult way of accomplishing the same thing. Whether you recognize the forgivable portion as income or remove an equivalent amount of expenses, it’s the same increase of $10,000 to net (taxable) income. Maybe there are some situations where that makes a difference, but I haven’t encountered one with my clients.

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**Author:** ![niceday](https://avatars.discourse-cdn.com/v4/letter/n/ce7236/32.png) [@niceday](https://www.protaxcommunity.com/u/niceday)\
**Post date:** [October 7, 2021, 7:02pm UTC](https://www.protaxcommunity.com/t/election-under-subsection-12-2-2-of-the-ita-for-ceba-forgivable-portion/4866/3 "2021-10-07T19:02:17Z")

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Hi Nezzer, Thanks for your comment. No doubts about the increase of $10,000 to taxable income. Just not sure about the procedures of doing the election with CRA, or if any support documents required for it. 🙂