I’m claiming an insolvency deduction on a final T2 on Schedule 1.
Can anyone provide the template for the Insolvency election letter that must be sent to the CRA?
I would just use your company letterhead, and briefly explain the situation, and reference whatever attachments you are including (documents from the insolvency trustee or court, etc)
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It’s a shareholde loan amount that the corporation will not be able to repay to the shareholder due to the corp being insolvent (and shortly will be dissolved).
And he thinks he can claim an insolvency deduction for that? Well, good luck. If CRA allows it, please report back here - I have half a dozen clients who could use that trick.