Guiding Your Business with Expert Advice

You may wonder if your company losses and profits from your participation will be part of your taxable profit or known as participation exemption. When we speak of profits we include dividens received, but also profits on the sale of participating intrest. Losses include, for example, losses on the sale of a participating interest. In this case, the profits are not taxed. The losses are not deductible. Purchase and sale costs of a participating interest are not deductible.