Continue with the previous article What you can deduct as self-employed business expenses – part 1, the following are more elf-employed business expense you can deduct on your income tax return.
Legal, accounting, and other professional fees
You can deduct the fees you for professional advice or services, including consulting fees. You can deduct accounting and legal fees to get advice and help with keeping your records. You can also deduct fees for preparing and filing your income tax and GST/HST returns.
You cannot deduct legal and other fees you incur to buy a capital property. Instead, add these fees to the cost of the property.
Management and administration fees
You can deduct management and administration fees including bank charges incurred to operate your business.
Rent as self-employed business expenses
You can deduct rent for property used in your business. For example, you can deduct rent for the land and building where your business is situated.
Maintenance and repairs
You can deduct the cost of labour and materials for any minor repairs or maintenance done to property you use to earn income. However, you cannot deduct the value of your own labour.
Salaries, wages, and benefits
You can deduct gross salaries and other benefits you pay to employees. Salaries or drawings paid or payable to you or your business partners are not deductible.
You can deduct the salary you pay to your child or your spousal, as long as you meet all these conditions:
- you pay the salary;
- the work your child or your spousal does is necessary for earning business or professional income; and
- the salary is reasonable when you consider your child’s age, and the amount you pay is what you would pay someone else.
Keep documents to support the salary you pay your child or your spousal.
Report the salaries you pay to your children and spouse or on T4 slips, the same as you would for other employees.
Property taxes
You can deduct property taxes you incurred for property used in your business. For example, you can deduct property taxes for the land and building where your business is situated.
Travel expenses as self-employed business expenses
You can deduct travel expenses you incur to earn business and professional income. Travel expenses include public transportation fares, hotel accommodation, and meals.
Telephone and utilities
You can deduct expenses for telephone and utilities, such as gas, oil, electricity, and water, if you incurred the expenses to earn income.
Delivery, freight, and express
You can deduct the cost incurred in the year of delivery, freight, and express that relates to your business.
Computer and other equipment leasing costs
If you lease computers, cellular telephones, fax machines, and other equipment, you can deduct the percentage of the lease costs that reasonably relates to earning your business income. You can also deduct the percentage of airtime expenses for a cellular telephone that reasonably relates to earning your business income.
Leasing costs as self-employed business expenses
You can deduct the lease payments you incurred in the year for property used in your business.
Convention expenses
You can deduct the cost of attending up to two conventions a year. The conventions have to:
- relate to your business or professional activity; and
- be held by a business or professional organization within the geographical area where the organization normally conducts its business.