Filing your Canadian tax returns for your business is essential to running a successful legitimate business. Whether you have a sole proprietorship, a partnership or an incorporated, it’s important you understand which business expenses qualify as tax deductions and how you can maximize those deductions. Here’s a list of some business expenses that you may not know qualify for Canadian income tax deductions…
If you bought or rented equipment for your business or for a particular project, make sure you save the receipt of the purchase or rental. This includes your office furniture rental, vehicle rental for business purposes and even huge pieces of machinery. Whether these are paper receipts or digital, make sure you compile them in one folder and give them to your accountant.
If you’re a contractor who has a huge team of labourers working for your business or you hire a contracting company who provides your labours on a project-to-project basis, you can claim their fees as a business expense. Labour costs can differ based on your project and business. While you have to provide them with a T4, you can still file for the expense deduction listing them as contractors or independent employees.
When it comes to home improvement projects, your main workspace is the home of your client. But many business owners operate their primary business functions from a physical office. If you own or rent an office space to manage your business, store your equipment and for client meetings, you can claim the expense for income tax deductions.
Your HomeStars Business Invoice
If you have a paid HomeStars business account, you can claim this expense for your Canadian Income tax deductions. One of the requests that your customer success manager can help you with is getting you those invoices for tax filing purposes. Whether you have a monthly, quarterly or yearly payment plan, your customer success manager can send you the billing invoices for your membership account. You can share these receipts with your accountant to claim them for the tax season.
Filing taxes for your business can be a tedious process. If you’re not well versed in the process, we highly recommend you talk to a tax professional for assistance. To receive your HomeStars business invoices, get in touch with your customer success manager today!