Sole Proprietor expense


If I have a 9-5 job and want to start a sole prpritership ,can I write off those expenses against my personal income from my 9-5 job even if I am not making a profit yet with the sole propritership?

Thank you
david ingram replies:

Just about.  As long as it is a legitimate business, any losses are deductible against your wages from the District.  You would likely use Canadian form T2124 which you find at -

You will notice a place for office in the home as well which means that you get to calculate a percentage of taxes, mortgage interest or rent But there is an exception if you are not making a profit.

That exception is an office or storage or studio in your home.  Although you can calculate the expense on a square footage basis, you will notice that it is not a deduction unless or until you have a profit in the business.  However, you 'do' get to carry the office in home expense forward until you do make a profit.

Being a sole proprietor can also help make your mortgage interest 100% deductible.  Go to and read the November 2001 newsletter in teh top left hand box.