This person started a business (farming) in 2021 and spent money setting it up. He never claimed the expenses or investments. He incorporated in 2022 and continues investing in the business. Any suggestions on what to do with the expenses made in 2021. - Redo the 2021 personal taxes or rollover in the corporation as shareholder advance? Any other ideas? He registered for sales tax in the latter part of 2022 so obviously taxes paid before registering cannot be claimed.
Pre-incorporation (startup costs) are generally capitalized as an asset and amortized.
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Thanks. Good idea but a good part of the expense were for short term production ie working the land, seeding etc.
Paragraph 28(1)(c) MIA Closing Inventory and some 28(1)(b) Optional Inventory if desired?