You can generally deduct business expenses – if they are incurred to produce income. If you claim expenses, you must be able to back up your claim. You do this by keeping records of all your business-related expenses and recording the expenses in a journal or excel. Examples of expenses you can deduct:
- Accounting/Legal Fees
- Advertising Expenses
- Professional Fees and Dues
- License Costs
- Interest and Bank Charges
- Meals and Entertainment
- Maintenance, Repairs and Vehicle Expenses
- Use of a Workspace In Your Home
- Inventory and Costs Of Goods Sold
Related information is available from the Canada Revenue Agency and the CRA’s Business and Professional Income T2125 tax guide.
