“In this world, nothing is certain but death and taxes.”

– Benjamin Franklin

I seem to be making this list over and over again for self-employed people who want to know what they can claim as an expense against their income. So I decided to post it here, and then just send people the link. Total time saver!

Please contact me if you need any clarification about anything listed here, or have questions about other expenses that may be deductible for your business.

  1. Costs of goods bought for re-sale
  2. Materials
  3. Vehicles and equipment bought (assets over 500$) (These will be subject to depreciation calculations. You need to record the total cost and the date the item was purchased. contact me for more information about depreciation.)
  4. Small tools and equipment (under $500)
  5. Subcontractors
  6. Travel expenses
  7. Legal and accounting fees
  8. Advertising and promotion expenses
  9. Telephone bills (cell phone or workplace phone but not a home landline)
  10. Interest and bank and credit card charges
  11. Office supplies
  12. Postage and freight costs
  13. Internet costs (if for business and personal make an estimate of how much business and how much personal)
  14. Meals and entertainment (for the purpose of business they are 50% deductible)
  15. Insurance – business, professional liability (check with me for more clarification regarding personal life and medical insurance)
  16. Business use of home (The easiest way to calculate is if you have a dedicated area of your home that is an office 24/7. In this case you would calculate by square footage what proportion of your total living space is used for business.) This includes: property taxes, mortgage interest, rent,repairs and maintenance, utilities (not including home phone line). NB. If more than one person in a household is self-employed, only one of you can claim these expenses.
  17. Auto Expenses (You are required to log the business and personal use. Contact me for more information about ways to do this, or if you did not do it, other ways that you keep records that may suffice in the mean time. I do encourage everyone to do this for at least one year.) This includes gas, insurance, auto repairs and maintenance and parking.

This list was written off the top of my head and will probably be a work in progress for a little while. It is NOT intended to substitute for information from the Canada Revenue Agency. It is a guide to help you organize your shoe box full of receipts before you meet with a tax professional. Anyone filing their own taxes should confirm the information I have given you by referring to the Canada Revenue Agency website.


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