Advice and guides to help improve your finances!

Business Deductions

Things you need to know about running your own business in Canada. What you need to do when you need a financial consultant.

  • Call Reality Capital Management for advice
  • Small Business or Corporation
  • Who keeps your books?
  • What role do you play?

Canadaian Busines Deductions

  1. Name of business
  2. Total income for the calendar year
  3. Purchases of goods and materials if you resell them as part of your business
  4. If you sell goods, inventory value on January 1  and on December 31
  5. Amounts paid to a subcontractor
  6. Advertising
  7. Meals and Entertainment (write on the back of the receipt the name of the person you invited)
  8. Bad Debts – amounts that you do not expect to ever collect
  9. Insurance (liability and disability, life insurance is not allowed)
  10. Interest on money borrowed to run the business (get a statement from the bank)
  11. Business taxes paid to local municipalities, fees, licenses, dues,
  12. Business related memberships and subscriptions
  13. Office expenses (including, postage, business cards, stationery, telephone and other supplies)
  14. Supplies under $ 500 for any one item.
  15. Accounting Services, legal, collection and consulting expenses
  16. Rent (if you had a store or if you rented a locker)
  17. Maintenance and Repairs, Leases of equipment, computers, etc.
  18. Salaries (including the employer's contribution to CPP/QPP, EI, EHT, etc.)
  19. Travel expenses such as taxi, trains, airlines, car rental, buses and hotels
  20. Business Telephones (you are not allow to deduct the phone line in your home), cellular phones, pagers, etc.
  21. Other expenses such as utilities in your store, etc.
  22. Purchases of any supplies over $ 500 each such as computers, printers, furniture, software, etc.
  23. Delivery, freight and express, couriers
  24. Equipment rental
  25. Internet
  26. Bank charges, credit card charges
  27. Training
  28. Conferences and Meetings
  29. Equipment rental
  30. Storage
  31. Premiums paid for coverage under a private health services plan
  32. Car mileage (it is very important to keep a daily log of business and personal mileage)
  33. How much you spent in gasoline in 2015
  34. Car repairs
  35. Car Insurance
  36. Leasing costs if you do not own a car
  37. How much to spent to buy your car and in which year (if car is not leased)
  38. Car License
  39. Automobile Club
  40. Parking fees
  41. If you borrowed money to buy the car, how much interest did you pay the bank (the bank will let you know if you ask them)
  42. If you have an office in the house:
  43. How much did you spend to heat the house ?
  44. Electricity
  45. House insurance
  46. House maintenance such as painting, house repairs, etc.
  47. Interest on the mortgage (the bank should have sent you a statement in January)
  48. Property taxes on the house
  49. Other expenses, for example cable TV if you have a daycare business