Oct
19
In my Canadian personal taxes, how do I account for a personal loan I made to an incorporated company?
By
During 2007, I made a loan (Canadian $) to an incorporated company in Canada. How do I account for this in my personal income tax? Can I deduct this money from my income?
Sell and Rent Back
Student loan for Canadian students who want to study in Romania?Hi, I am currently a second year university student in Canada. I am planning to go study in Romania next year. I was wondering is there any kinds of student...
Free Canada Debt Consolidation – Getting Loan Consolidation in CanadaYou can find free Canada debt consolidation through a number of sources. Debt consolidation helps you deal with debt problems without filing for bankruptcy or giving up your property. The...
How do I go about getting a personal loan when I have no credit?I am 18, just getting prepared to go to college, and I have no credit whatsoever. I don’t need student loans because my dad pays for my school. However, my...
Fast Cash Personal Loan: Getting Cash Very Fast is Very Easy Now DaysSometimes some of your important works get spoiled in front of your eyes but you cannot help watching them getting spoiled. It happens when some unexpected expenditures arise and you...
What happens if a person dies after taking a personal loan?Hi, I have a doubt please let me know … what happens to the loan , if a person who has taken the personal loan dies? Do the bank takes...
Leave a Comment
You must be logged in to post a comment.
2 Comments
July 29th, 2009 at 4:22 pm
No you can’t deduct the loan unless the company defaults on it, and then there are certain criteria you have to follow for that to be the case (it is called a business investment loss, and the deduction is often called an ABIL – allowable business investment loss).
You report the interest income from the loan.
August 1st, 2009 at 7:55 pm
On your company’s balance sheet accounting, you should dr. bank or cash (your loan amount), and credit shareholder loan (your loan amount).
You cannot deduct your loan for accounting or tax purposes, unless you compnay goes bankrupt.