Tax deductions you may not have known about

When it comes to deductions there is one rule to abide by:

PERSONAL EXPENSES ARE NOT BUSINESS EXPENSES.

Although the following list outlines what expenses you can deduct there are certain rules for some of them so you will want to check with your bookkeeping or accounting professional for more clarity.

• advertising
• allowance on eligible capital property
• bad debts
• business start-up costs
• business tax, fees, licenses and dues
• business-use-of-home expenses
• capital cost allowance
• delivery, freight and express
• fuel costs (except for motor vehicles)
• insurance
• interest and bank charges
• fees, penalties or bonuses paid for a loan
• fees deductible over five years
• fees deductible in the year incurred
• interest deductible on property no longer used for business purposes
• interest on loans made against insurance policies
• capitalizing interest
• interest related to workspace in your home
• legal, accounting and other professional fees
• maintenance and repairs
• management and administration fees
• meals and entertainment (allowable part only)
• long-haul truck drivers
• extra food and beverages consumed by self-employed
• motor vehicle expenses
• office expenses
• other business expenses
• prepaid expenses
• property taxes
• rent
• salaries, wages and benefits (including employer’s contributions)
• supplies
• telephone and utilities
• travel

Keep in mind that invoices are required for all expenses and that the CRA won’t just accept credit card statements as proof of purchase so keep all your receipts.

Remember: The expenses must be incurred to earn business income