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Tax Write Offs?

Discussion in 'Business & Tax Advice' started by Meres, Jul 6, 2010.

  1. Meres

    Meres Junior Member

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    I recently incorporated a company to use for my IM stuff. I am pretty newbish about this still and am curious about what i can use for write offs? I'm assuming new computer, internet, electronics. What about rent (home office), electricity, food (business lunches)?

    I am in canada btw.

    Thanks!
     
  2. mannclann

    mannclann Newbie

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    Not sure about everything in Canada but here in the U.S. you can write off any room in your house that is dedicated to your business and even the electric and improvements made to your property. You can write of mileage that is business related, meals that are business related.

    The most important thing you can do is find a very good tax accountant and get advice up front, it will help you plan everything out.

    Rick
     
  3. TheBHCat

    TheBHCat Junior Member

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    Just like Mannclann said, I don't know anything about Canadian tax laws, but I'm sure they're not too different than here in the US.

    You can deduct anything (within reason) that pertains to the operation of your business.

    Some of the things I deducted on last years taxes (as they pop into my head in no order):

    Office rent
    Computer
    Internet Connection
    Webhosting
    Software
    Mileage for work-related reasons
    Dining / Entertained for work-related reasons
    Software / similar resources (training programs, etc.)
    Outsourced expenses

    Ummm... it's 1AM here and I've had a long day so that is about all I can think of. In short - you can deduct nearly anything that is business related, but also as Mannclann said, consult a certified accountant regarding the specifics.
     
  4. Meres

    Meres Junior Member

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    thanks for the replys.
    if im living in a one bedroom or bachelor suite, and using that as my 'office', how much of my rent could i write off? say if it is 1000$ per month.
     
  5. Sniper

    Sniper Regular Member

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    I'm in Canada, and the way it works is a percentage of square feet that you use for office comes out of your total rent/utilities. You can embellish a little. I don't thing Rev. Canada is going to come over with a measuring tape. You'd be lucky to write off 1k per month though. Other things you can consider is food expenses (track who you are with, and a reason - I write down the current thing I am doing on the back of the receipt in case i get audited)

    Unfortunately there really isn't a whole lot you can write off because this business doesn't incur any expenses. I've grilled my accountant for reasons. He let's me write of clothes and haircuts for youtube vids. And of course you have RRSP's which will wind up in the gutter anyways, but at least they are a write-off :)
     
  6. Meres

    Meres Junior Member

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    i didnt think of clothing, haircuts, appearance type stuff. but you could say these are a necessity for creating good relationships with clients. accessories like watches, sunglasses, cars, are obviously included in this.