Business Expenses – Deductible or Not?
720
post-template-default,single,single-post,postid-720,single-format-standard,qode-social-login-1.1.3,qode-restaurant-1.1.1,stockholm-core-1.1,select-theme-ver-5.1.8,ajax_fade,page_not_loaded,side_area_over_content,wpb-js-composer js-comp-ver-6.0.5,vc_responsive

Business Expenses – Deductible or Not?

Business Expenses – Deductible or Not?

One of the most common questions that I receive from my clients regarding their business expenses is as follows: can I deduct this against my business income? Is this a business expense? Is this tax deductible?

Per the Canada Revenue Agency: In general, you can deduct any reasonable current expense you paid or will have to pay to earn business income. See below for additional details.

Personal Expenses are excluded from this discussion because they are not bonafide business expenses incurred to earn business income. They should not be included into your business expenses.

For example, groceries, haircuts & styling products, family vacations, fitness attire,  & meals for 1 person are not considered business expenses in most cases, unless you are a provider of which (grocery store, hair stylist, vacation hotel).

Determine what is deductible and what is not deductible can be tough, but that is where I can help.

See below for additional information relating to common business expenses.

For more information, please refer to the below link:

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses.html

If you liked this post and this raised your interest in getting in touch, we can connect and learn how I can be your financial quarterback.

No Comments

Post a Comment