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