Home Forums Money matters Small business tax deduction question

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  • #999896
    Toki25
    Member
    • Total posts: 1

    Hi everyone. I have a question regarding what I can claim as a deduction for my photography business. I was given money from a family member to help pay for startup costs – mostly for equipment and insurance to the value of about 20K. Am I able to claim this on my tax return if this was purchased with money loaned to me by family?

    #1221795
    Dave – FS Concierge
    Moderator
    • Total posts: 2,523

    Welcome to the forums [USER=116468]@Toki25[/USER]!

    I’m pretty sure you can claim it. An expense is an expense even when the money is borrowed. But hopefully one of our tax experts can clarify or explain it better. :)

    Dave

    #1221796
    JamesMillar
    Participant
    • Total posts: 1,675

    Yes. If the money was yours (whether gifted to you or lent to you) and with that money you acquired business assets then subject to the tax depreciation regulations you can claim part or potentially all of those items. If you are registered for GST and if you paid GST when acquiring those items then you may also be eligible to claim back those GST credits.

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