Tax write-offs for when you DON'T proceed with a deal?

[Quantized]

Hi everyone!

I'm potentially facing a situation where I'm not closing due to status certificate issues & home inspection red flags. I paid about $300 for the home inspection and $100 for the status certificate. Can this be claimed come tax time?

Thanks!

 

[Thomas Beyer]

Yes it can as an expense, assuming you intend to buy other assets.

 

[Quantized]

Thank you Thomas! Yes, have several on the go that I intend to close on.

Unfortunate to have to spend money to learn things the agent didn't disclose but that's the cost of doing business I guess.

 

[Thomas Beyer]

You are running a ( small ) business. As such, always deduct what is actual and what is reasonable.

With these two rules you will be right 95-99% of the time. CRA can always audit you and may deny things. As such if in doubt deduct it, following these two rules !

 

[Quantized]

Thank you again!