Personal Finance

Should I claim HST credits for stuff allocated to a shareholder loan?

  • Last Updated:
  • May 12th, 2020 6:22 pm
[OP]
Member
Feb 18, 2019
336 posts
356 upvotes

Should I claim HST credits for stuff allocated to a shareholder loan?

I formed a corporation, I am the only shareholder. Until the corp gets some money, most expenses (maybe 10-15k over the next 4-6 months) will be incurred by myself and allocated to a shareholder loan. Does the corp claim HST credits during this period even though the corp has not paid me back? Or can the corp not claim the HST credits until after the loan is repaid?

Thanks!
1 reply
Member
May 12, 2003
263 posts
137 upvotes
GTA
If the corp is an active business, and those expenses relate directly to the business, you should be able to claim the HST as long as you are a HST registrant.

There are some caveats such as meals/entertainment, 50% reduction.
DonkeyDoo wrote: I formed a corporation, I am the only shareholder. Until the corp gets some money, most expenses (maybe 10-15k over the next 4-6 months) will be incurred by myself and allocated to a shareholder loan. Does the corp claim HST credits during this period even though the corp has not paid me back? Or can the corp not claim the HST credits until after the loan is repaid?

Thanks!

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