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February 21, 2008 4:51 PM Subscribe
CanadianTaxesFilter: Can I legally claim some of my debt as an "investment expense" if I give up my second job to focus on my business?
I currently work 2 jobs - one full-time as well as a part-time job to help bring down my debt. Whenever I have free time, I am trying to work on a business that I would like to develop, but there is not much time left at the end of the week.
So I would like to quit the part-time job and spend more time working on the business.
If I would have made about $10-$20K annually with the part time job, could I legally claim $10-$20 K of the debt (and associated interest) as an investment expense?
My rationale is that had I not decided to invest in the business, I would have time for my part-time job and thus would be $10K-$20K richer by the end of the year.
I guess I could always "borrow" $10-$20 K and then pay down $10-$20 K of my debt, so that on paper, I have this amount specifically tagged as a "business investment expense", but I would rather avoid all the paperwork associated with it and besides, I think I have maxed out all my cards!
Thanks!
I currently work 2 jobs - one full-time as well as a part-time job to help bring down my debt. Whenever I have free time, I am trying to work on a business that I would like to develop, but there is not much time left at the end of the week.
So I would like to quit the part-time job and spend more time working on the business.
If I would have made about $10-$20K annually with the part time job, could I legally claim $10-$20 K of the debt (and associated interest) as an investment expense?
My rationale is that had I not decided to invest in the business, I would have time for my part-time job and thus would be $10K-$20K richer by the end of the year.
I guess I could always "borrow" $10-$20 K and then pay down $10-$20 K of my debt, so that on paper, I have this amount specifically tagged as a "business investment expense", but I would rather avoid all the paperwork associated with it and besides, I think I have maxed out all my cards!
Thanks!
If the tax law allowed this, everybody would claim an extra deduction, because everybody has the potential to work more hours or get a second job. For example, I'm pretty sure I could have been a movie actor making $10 million last year, but instead I decided to develop my own business. Should I be able to deduct the $10 million I didn't make?
However, there may be legitimate opportunities to recoup some taxes if you decide to follow through with your business. You should probably discuss your situation in detail with a tax professional.
posted by blue mustard at 5:42 PM on February 21, 2008
However, there may be legitimate opportunities to recoup some taxes if you decide to follow through with your business. You should probably discuss your situation in detail with a tax professional.
posted by blue mustard at 5:42 PM on February 21, 2008
No. In a nutshell, CRA is only interested in income earned and the (actual) expenses incurred to earn this income.
posted by BozoBurgerBonanza at 6:13 PM on February 21, 2008
posted by BozoBurgerBonanza at 6:13 PM on February 21, 2008
That $10k-$20k isn't a debt. It's an opportunity cost.
posted by acoutu at 8:04 PM on February 21, 2008
posted by acoutu at 8:04 PM on February 21, 2008
This thread is closed to new comments.
And the tax people give you no extra credit for creative interpretation, sorry.
posted by 45moore45 at 5:17 PM on February 21, 2008