19 Most Popular Tax Deductions in Calgary

It is the question every Calgary small business owner asks me: What can I deduct from my taxes?

There are an incredible amount of things that can be deducted but there are so many variables that can determine if you are eligible to deduct those items. For example, these factors will certainly affect your eligibility: your location, how much you make, children, personal status, type of business, where you do business, are you incorporated, do you work from home, do you have children, employees, other employment, commissions, employment insurance, capital gains, etc., etc. – and there are many etc’s.

1. Equivalent-to-Spouse Credit
2. Charitable Donations
3. Safety Deposit Boxes at the Bank
4. Childcare Expenses
5. Medical Expenses
6. Your First Home
7. Dividend Income
8. Disability Credits
9. Personal Income Credit
10. Carrying Charges
11. Moving Expenses
12. Self-employment Expenses
13. Kids Activity Expenses
14. Political Donations
15. Transit Pass Receipts
16. RRSP Contributions
17. Office in-home Expenses
18. Professional or union-dues
19. Interest Paid on Student Loans

Tax Deductions Tip: Self-employment Expenses

This is essential information that all self-employed business owners need to read!

If you are self-employed in Canada there is a good chance you are working from home. Basically, your home is your office and you can claim a tax deduction for the part of your home you are using as your business.

Owners: If you own your home you can claim a portion of your mortgage interest, property taxes, and capital cost allowance.

Renters: If you rent your home you can claim a portion of your monthly rent. You can include in your deduction a share of the utilities, insurance or home maintenance allotted to the area of the house set aside for business use. For each of these business expenses you can claim a percentage equal to the percentage of your home that is reserved for business.

It is important to note that you are not allowed to use these expenses to create a loss or be deducted against any other sources of income.

Only expenses 100% related to your business, such as travel, entertainment for the customer, and supplies are fully deductible.

CRA has a form that contains a guide entitled “Calculation of Business-Use-of-Home Expenses” that will help you calculate your allowable claim.

*For more information on self-employment expenses please contact me for a consultation and read-up on the Canada Revenue Agency (Small businesses and self-employed) website.

---

*p.s. I am a small business accountant and growth & profit expert in Calgary, Alberta Canada. Click here to contact me anytime for help with your Small Business Accounting, Bookkeeping, Taxes, and much more.