# Wife's Personal Business Loss Deductable on my Income?



## $teve (Apr 5, 2009)

Hi 

I am in the midst of doing our taxes ( I know, procrastinator ) and have a question. 

My wife has a personal business which will show a loss. Can I claim that loss under my Income ? Or is it simply carried forward under her name and would go against any future profit. 

Thanks in advance 

$teve


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## MoneyGal (Apr 24, 2009)

Carried forward.


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## Guban (Jul 5, 2011)

MoneyGal said:


> Carried forward.


While it is clear to me that the OP can not claim his wife's business losses, I'm not sure, besides home expenses, how she can carry forward losses on the T2125. Can you elaborate MG?


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## MoneyGal (Apr 24, 2009)

A loss arising from business is a non-capital loss and can be carried both back and forward: http://www.cra-arc.gc.ca/E/pub/tp/it232r3/it232r3-e.html

The loss is typically recorded on line 252 of the following year's return. 

With respect to losses arising solely from workspace in the home expenses (which you referenced above), these losses are subject to a special rule which provides that they are deductible only against self-employment income earned in a future year. All other losses are "regular" (non-capital) losses which are typically deductible against other income/in other years.


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