What can I write off?

[leafs]

I am a partner in a fine art Printing business as well we print peoples photographs directly onto Canvas and them have them stretched. But what I am wondering is what can I write off? I know I can write off KM's if I am driving to meetings and stuff for work. But what else?

[whoisthis_95]

you need to see an accountant dude ...
you can write off:
- portion of your home (percentage of everything for home office)
- purchases made for the business
etc. etc.

[shellysoda]

Yeah definitely talk to a good accountant.

Do you have a cell phone that you use for business? You can write that off for sure. Internet (if you use it for the business), any furniture for your home office. Make a list of everything and then your accountant can advise you. I know a realtor that writes off all of her clothes, shoes, every lunch, every trip, etc. I wouldn't recommend it but she's been doing it for years. Good luck to you :)

[wheel]

Careful with the deduction of home office stuff. Prior to being incorporated (which my accountant says basically screws up the ability to deduct home office, because I'd have to charge rent to the corp) we used to deduct that. Then we ceased deducting home office expenses per my accountant.

If you're deducting part of your mortgage interest and house expenses for business, then there's a case to be made when you sell your house that part of that sale is business related - and then you don't get the free ride tax-wise that you do if your house is just your residence. I don't know that rev canada has ever done anything that way but my accountant thought it was a risk, and I agreed. So we don't deduct home office stuff anymore.

In short, it's what a lot of people do, but be aware there is a risk there.

[sparkplug]

Deducting mortgage interest is okay. Deducting the principle is not okay - that makes your business own part of your home.

If you have a lot of medical expenses (prescriptions, dental work, etc.), join a Private Health Services Plan (PHSP).

I don't believe clothes is a legal deduction unless it's specialized work gear like coveralls, safety glasses, hard hat, etc. Suits, ties and thongs don't qualify.

Revenue Canada has good explanations of what's valid and not valid. Check with their web site and get a book on Canadian small business accounting.

[maniacshopper]

If your in business, you should always have a good accountant. That's what write offs and fudging numbers (whoops) is all about. It's not what the numbers should say, it's what you want it to say, and they'll make things work.

[Canucklehead]

Careful with the deduction of home office stuff. Prior to being incorporated (which my accountant says basically screws up the ability to deduct home office, because I'd have to charge rent to the corp) we used to deduct that. Then we ceased deducting home office expenses per my accountant.

If you're deducting part of your mortgage interest and house expenses for business, then there's a case to be made when you sell your house that part of that sale is business related - and then you don't get the free ride tax-wise that you do if your house is just your residence. I don't know that rev canada has ever done anything that way but my accountant thought it was a risk, and I agreed. So we don't deduct home office stuff anymore.

In short, it's what a lot of people do, but be aware there is a risk there.

If you don't charge rent to the corp BUT it is your primary workplace with a defined area used solely for business, then the mortgage interest can be deducted. The consideration if you charge rent is that the portion that you've deemed to be "business" is no longer free of capital gains tax when you sell your home.

Given the varying opinions and experiences here, you can see the need for hiring a qualified/certified accountant.