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I am one of the three directors that formed a corporation in Oct/2010. We have just completed our business taxes for the years 2010-2018.As a result, the corporation is assessed to have over $200,000+ in non-capital losses for all the years combined.
Question 1: I have been told by my accountant that I might be able to use these losses as an "ABIL". I would like to know more about "ABIL" and also the process involved to applying for this.
Question 2: Also, if we don't dissolve this corporation but instead sign off the ownership to one of the directors only, can the other two directors still use their share of "ABIL"?
Thank you for reading this and your wonderful website.
Ethan
A shareholder can claim an ABIL for shareholder debt that has become uncollectible. One half of an ABIL can be deducted by a shareholder against other sources of personal income he/she has in the year. For further information on how to apply for an ABIL, please visit the following site: