I recently started a business and incurred many expenses. The business never got off the ground. I'm going to cut my losses and shut it down. Can I claim the business losses on my personal tax return?

ANSWER

The BIDaWIZ Team's Answer:

You can certainly claim a loss for shutting down the business. Please note that the type of business entity will largely dictate the procedures that you should follow (i.e. corporation, sole proprietorship, partnership). In addition, you may be able to claim a net operating loss against other types of income. Any losses unused can be carried forward for up to 20 years.