http://www.articlesnatch.com/rss2/judgement judgement Articles from ArticleSnatch.com Rss Follow Up Thu, 16 Feb 2012 23:10:26 -0500 GOOD NEWS: Allowable start-up intervals adjust according to factors like the type of industry (i.e. writing), and potential economic uncertainty (i.e. high interest rates) Start up period is set on an individual basis. Taxpayer is able to maintain existing employment during a start-up period, and if they so choose,\deduct the start-up expenses from employment income. It's not up to CRA to second-guess business judgement of the taxpayer. CRA has the benefit of hindsight to analyse the viability of a commercial venture and this should be taken under consideration by the courts. BAD NEWS: Subsection 3.1(1) allows that a taxpayer has a loss for a taxation year from a business or property "only if, in the year, it is reasonable to assume that the taxpayer will realize a cumulative profit from that business or property" over the complete period that the taxpayer can "reasonably be expected" to carry on the business or hold the property. Subsection 3.1(2) particularly excludes capital gains and capital losses in the determination of cumulative profit for this purpose. Section 3.1 does not distinguish between commercial businesses/investments and those with a personal or hobby element. 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