Can I deduct my personal proposal payments in a sole proprietorship? I did a consumer proposal which was accepted. I have a year or two left of payments. In that time I have started a sole proprietorship and was wondering if my payments are a write off?
You are only allowed to make expenses deductions on your tax returns if they were incurred to earn income.
Your proposal payments do not qualify as a business deduction.
Earl Sands, Licensed Insolvency Trustee