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Expense Deductions
Deducting business expenses
As a rule, you can deduct any reasonable expense you incur to earn
business income. The expenses you can deduct include any goods and
services tax (GST) you incur on these expenses unless you claim
an input tax credit on these expenses. Therefore, enter only the
business portion of expenses on the form. Please note that you cannot
claim expenses you incur to buy capital property.
Deductions might include:
- Advertising
- Bad debts
- Delivery, freight and express costs
- Fuel costs
- Insurance
- Interest on money borrowed to run your business
- Maintenance and repairs
- Management and administration fees
- Meals and entertainment (50% of the amount you incur, or an
amount that is reasonable in the circumstances, whichever is less)
- Motor vehicle expenses (including license and registration fees,
fuel costs, insurance, interest, maintenance and repairs and leasing
costs)
- Telephone and utilities
- Disability related modifications, devices and equipment
- Expenses for disability-specific computer software and hardware
attachments
- Computer leasing costs
- Other leasing costs
- Small tools (i.e. less than $200 cost per tool)
- Convention expenses (maximum two conventions a year)
- Capital cost allowance
- Allowance on eligible capital property (e.g. goodwill, franchise)
- Business use of home expenses
For more information, please contact the Canada Revenue Agency,
Tax Services
Vancouver District Office
1166 West Pender St.
Vancouver, BC V6E 3H8
General Inquiries: (604) 689-5411 or 1-800-663-9033
Business, GST Payroll: 1-800-959-5525
Requests for forms: 1-800-959-2221
See also:
Guide
for Canadian Small Business
Employee
or Self-Employed?
Business
and Professional Income NOTE THIS IS THE 2002 EDITION
Corporate
Income Tax Information
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