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Level 2
October 13, 2020
Question

is it possible to have car and meal expenses for self employed for 4 yrs and no income?

  • October 13, 2020
  • 1 reply
  • 1 view

can someone have car and meal expenses for 4 yrs without any income/

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1 reply

Level 3
October 28, 2020

It is possible this situation would occur.  Keep in mind it would likely invite an audit from the CRA.  On the other hand, if your client can demonstrate that the car and meal expenses were undertaken in order to seek out work but that work [and resulting income] have not yet materialized, it might be allowable.  You need to have that kind of conversation with them because, sure as anything, Revenue Canada will.