collapse


* User Info

 
 
Welcome, Guest. Please login or register.
Did you miss your activation email?

* Who's Online


Dot Guests: 104 | Dot Users
Dot Hidden: 0

* Board Stats

  • stats Total Members: 12735
  • stats Total Posts: 126261
  • stats Total Topics: 17611
  • stats Total Categories: 5
  • stats Total Boards: 48
  • stats Most Online: 814

* Advertisers

Gear Pan

Author Topic: How do I run it as a business ?  (Read 2355 times)

0 Members and 1 Guest are viewing this topic.

Offline geezir

  • Sr. Member
  • *****
  • Posts: 253
  • Kudos: 41
Re: How do I run it as a business ?
« Reply #10 on: February 14, 2017, 09:39:43 PM »
The first thing do to is to consult with a qualified accountant that is familiar with Canadian exploration expense. (CEEs) CEEs are " are those incurred by the taxpayer for determining the existence, location, extent, or quality of a mineral resource, or petroleum or natural gas, in Canada."  Canadian development expenses (CDEs) are those incurred in the production of a mine.  They have a different tax treatment.
In a nut shell if one is prospecting as a business the related expenses are deductible.
If one is investing certain investments have flow through deductions other have  Tax Credits. 
An important point is that hobbies are not deductible. So the problem is the distinction between prospecting as a business or as a hobby.  As mentioned by jobinyt
By the way the "reasonable expectation of profit" argument that RC used for so long to deny deductions has been tossed. RC was claiming if the venture failed then deductions were deigned,  "reasonable expectations or not"
http://www.incometaxcanada.net/news/reasonably-expect-profit.htm

I have deducted exploration expenses from the 1970's and I plan to continue but this has always been a business venture to me. 
This is not advice that your expenses are deductible. It is information if the circumstances are valid CEEs are deductible.
 Accountant's fees are deductible.

Offline Bironicman

  • Member
  • **
  • Posts: 2
  • Province/State: British Columbia
  • Country: ca
  • Kudos: 0
Re: How do I run it as a business ?
« Reply #11 on: June 09, 2018, 11:28:53 PM »
Hi there .. new here still trying to learn. I wrote offmy gas and expenses last year for my trips to my claim. I am looking forward  to doing it again. My end game has never to make money but more as an exciting camping venture that produces from sweat equity. So now I'm seeing I might have bit a chunk off a mean dog as it were . Now I must produce more than I invest in two years?? 

Offline mcbain

  • PPT Invited
  • *****
  • Posts: 5335
  • Province/State: hope bc
  • Country: ca
  • Kudos: 109
Re: How do I run it as a business ?
« Reply #12 on: June 10, 2018, 06:50:01 PM »
Hi welcome to the site.Takes 2 posts to become a member.Bottom line is you can not claim expensives with out showing a income.This is a example only. but makes it pretty simple.Take a person on welfare tries to claim expences at tax time and expects to get a rebate,Not going to happen.On the other hand Large corparations doing a lot of exploration work  can write of most or all costs simply becuase they have income of some kind.Otherwise they would not excist.Luck Mcbain.
I started out with nothing Istill have most of it.

 


Gear Pan