When can I claim the starters deduction as starting business owner?
- You could claim the self-employed deduction in the current tax year.
- You were not an entrepreneur for income tax purposes during at least one year within the previous five years.
- You did not use the self-employed deduction more than two times within the previous five years
Count the amount of the starters deduction on top of the amount of the self-employed deduction. It may be that the self-employed deduction and the starters deduction together are higher than your profit. The part that is higher than your profit, can be used to reduce other income from work and home. If you have no other income, you can deduct the amount in other years.