Filed under: Business Tax Planning, Canadian Business Channel, Individual Tax Planning | Tags: Golioth Enterprises, personal income tax, self employment, Tax deductions, tax planning, tax refund, unlimited accounting support for your green business!
When working for your own business, there are sometimes perks to owning one own’s business. The deductions you will be able to claim in terms of travel, meals and lodging are beneficial and tax deductible. When setting up a business if it is an incorporated entity one may use travel time as a business deduction. The general rule is that as you the employer/owner of your corporation can sign what is known as a T2200 “Declaration of Conditions of Employment ” I have attached the form which can be found on the Revenue Canada website which explains what is to be included. Also this is the link to read up on what is allowable and what is not, http://www.cra-arc.gc.ca/E/pub/tg/t4044/t4044-07e.pdf. There are mileage stipulations for allowed travel, but if you meet these requirments you may use these deductions. As always when dealing with any governmental agency it is imperative that you keep well detailed records that can be substantiated in the case of an audit arising. If need be, everytime you get a receipt write on the receipt itself where and when the expense occured and for which job it was related to; so you can trace it back to an invoice that was sent out to a customer to relate the expense to cost of earnings in case of audit.
Sincerely,
Saverio Filippis
