Here is a list of potential expenses claimable for small businesses. This is based upon the CRA’s list shown on the form used
for this purpose T2125. Use this as a guideline for claiming your expenses. Not all will apply as each business is different. Retain all
receipts for at least 6 years. You do not have to submit them with the tax return but retain them in case the CRA asks to see the receipts.
Prepare a list of expenses and total them up in the following categories:
List of expenses
• Advertising (Line 8521)
• Allowance on eligible capital property (Line 9935)
• Bad debts (Line 8590)
• Business start-up costs
• Business tax, fees, licenses, dues, memberships, and subscriptions (Line 8760)
• Business-use-of-home expenses (Line 9945)
• Capital cost allowance (Line 9936)
• Current or capital expenses
• Delivery, freight, and express (Line 9275)
• Fuel costs (except for motor vehicles) (Line 9224)
• Insurance (Line 8690)
• Interest (Line 8710)
• Legal, accounting, and other professional fees (Line 8860)
• Maintenance and repairs (Line 8960)
• Management and administration fees (Line 8871)
• Meals and entertainment (allowable part only) (Line 8523)
• Motor vehicle expenses
• Office expenses (Line 8810)
• Prepaid expenses
• Property taxes (Line 9180)
• Rent (Line 8910)
• Salaries, wages, and benefits (including employer’s contributions) (Line 9060)
• Supplies (Line 8811)
• Telephone and utilities (Line 9220)
• Travel (Line 9200)
• Other expenses (Line 9270)
If you have to pay HST/GST then keep a record of the expenses and income before and after those taxes. Having a spreadsheet such as excel is a good idea although you can do it manually. In that case I suggest having a calculator with a tape.
Most small businesses have to start collecting HST/GST once their income reaches $30,000. Information on that is available on the CRA website.
If you have a home office:
Rent or Mortgage interest
If you have auto expenses:
- license and registration fees;
- fuel and oil costs;
- interest on money borrowed to buy a motor vehicle;
- maintenance and repairs; and
- leasing costs.
If you wish to write off an auto. Then cost, date of purchase, lease etc. need to be provided. Have your purchase or lease agreement handy as these contain the pertinent information to complete the applicable schedules.
For all capital expense items note the purchase date, amount, taxes etc.
which is not completely deductible in one tax year, with some exceptions, so keep a separate list of these assets as they will be depreciated over time.
More information can be found here:
Being self-employed increases the cost of Canada Pension Plan contributions as you are contributing to CPP on behalf of yourself and your employer. In this case you are both.