Making deductions from your business income is not as easy as it sounds. However, with the help of our expert accountants, you don’t need to worry about dealing with this process on your own! There are some categories of personally paid expenses that can be deducted from your business. These examples include:
- Entertainment at Home as Business Promotion Expense
When you entertain clients at home, you should keep a record of food and drinks purchased. You will be able to claim 50% of the cost. Make sure the expense figure you provide is 100%; the deductible portion will be determined by our associates.
It is important to keep any receipts and details of your client (actual or potential) in order to justify the claim upon Canada Revenue Agency request. For meals and entertainment expenses you should include the name of the person you were with on the back of the receipt.
- Other uncategorized expenses:
Expenses are not always “all or nothing”. Although it may not be appropriate to claim 100% of a particular expense, it may be reasonable to claim a portion for business. If you put these items into the general category and provide our associates with a detailed breakdown of them, their legitimacy can be discussed at your year-end.
Still not sure about how these deductions apply to you? Don’t worry, we are here to help! Here at CPA4IT, we assist our clients in filing their tax return, manage their expenses, and bookkeeping. Make sure to review the CPA4IT Tax Checklist, to get a list of all the corporate and personal tax return information we require from you.
Don’t forget to download our Pay Less Tax Guide to learn how we can help you pay less tax. For more information, visit our website and book a free consultation with our experts!