From time to time, I get calls from small business owners with the question; Harv what am I allowed to deduct for my business? A simple mantra I keep is that an expense that relates to your business generating revenue will generally be deductible.

Depending on the type of business you operate, typical expenses are:

• Rent, repairs, and utilities paid where you operate your business. If you own the building, you can deduct mortgage interest paid if any;
• Telephone – You can deduct costs related to business use of cell phones;
• Membership dues;
• Advertising paid to promote your business including google and social media ad campaigns;
• Business Insurance for general liability and building;
• Office supplies such as paper, toner, notepad, etc;
• Automobile expenses – Business-related travel is deductible only. Going to and from your place of business and your primary residence is not considered business travel;
• Meals and entertainment – Although you incur 100% of the expense, CRA only allows a 50% deduction on amounts that are reasonable. Note, these expenses should relate to business-related lunches and dinners;
• Fees paid to accountants, lawyers, bookkeepers, or other professionals – Legal fees incurred when you purchase a capital property are not deductible;
• Salaries and subcontractor fees paid;
• Interest on money borrowed to fund business operations is also deductible, however, it is always prudent to keep a clear trail of where the funds came from and the amount of interest paid.

This post has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only and is not a substitute for professional advice. Please contact Chander Professional Corporation to discuss these matters in the context of your circumstances.