Tax Tip Of The Week – November 28th

Hopefully, you haven’t, but maybe you’ve had a loss on one of your allowable business investments. An allowable business investment is an investment in a private Canadian corporation that is

:

a) A “small business” corporation that;
a) carries out 90% of its business on Canadian soil and;
b) existed 12 months before the disposition of the investment

While capital losses can only be used to reduce capital gains, you can use 50% of an “allowable business investment loss” to minimize all other types of income. Do note that the disposition cannot be with a person you are in an arm’s length relationship with, i.e. a family member.

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Tax Tip of The Week

Have you had to take any prescription medications (not vitamins) that your benefits don’t cover?

You can write off any prescription medications that you took this tax year, before December 31st. Similarly speaking as far as medical purposes go, you can also claim medical insurance that you have purchased for an out of country trip.