Btw, as a self-proprietor you can also write-off a half of CPP contribution (company's portion), family insurance premium, purchase of software/hardware (can be 100% or can be less, depends on a hardware)
Thank you Jessica for the connection with Montreal’s Reinvest Wealth!! I have an appointment soon! I’m starting a counselling practice soon and this information is nil to me! I’m very excited now! Thank you so very much!!! ❤️
This is a wonderful video Jessica, thank you for sharing. My question is, I'm just starting out, transforming my passion into my business, but I have purchased equipment for my business that goes back a few years. What is the rules on going back over my purchased recipes? Is there a limit to how far I can go back? My second question is, what qualifies as a recipe? Would bank statements showing rent payments qualify? And my 3rd question. If my business doesn't get off the ground, only making let us say, 1 dollar. Should I still put in my expenses?
For all business expenses, you need the receipts, you can't go off bank statements. And as far as what you can write off and how far back, the CRA specifies "To be able to deduct a business expense, you need to have carried on a business in the fiscal period in which the expense was incurred. Because of this, you have to be very clear about the date your business started." And as for claiming business expenses when your business isn't earning much or any money, this article is helpful groupenroll.ca/can-i-claim-business-expenses-without-income-in-canada/
This video could not have been posted with more perfect timing! Question for you: I’ve recently incorporated and pay professional dues. I usually have these as a tax deduction when filing my personal taxes… long story short I have two jobs (one as a professional contractor and one as an employee). Both require professional licensing and therefore fees. Can that be written off twice? Thank you for all the great content!
Wouldn't it be great to write-off the same expense multiple times!? Unfortunately, this is not the case and you can only use a tax deduction once. We recommend applying it where you have the highest tax rate. This is usually on your personal taxes as corporations have low tax rates. However, based on your comment, it seems like you are no longer self-employed and now working through a corporation, which means you will have to claim the professional fees in your corporate tax return.
Super helpful video! I’ve just recently found you and am loving all the information as I start this side gig journey!! Would purchasing one of your budget spreadsheet be considered an office expense or consulting write off? Also, if I’m required to complete continuing education credits in the form of webinars and online courses (from companies that are not typical educational institutions), can those be considered tax deductible?
If you can prove it will help you operate your business or help you generate revenue, then yes it my spreadsheet could be used as a office expense that's tax deductible. And yes any courses or educational programming you must undertake to maintain or upgrade your skills for you business are tax deductible as well.
Love your videos. Thanks for all you do. Question for you. Does commercial insurance cover damaged inventory say I have my office space and I sell clothing but it gets damaged because of a fire or flood?
Hi Jessica, love these videos as I am currently setting up my business, and trying to decide on sole proprietor vs. corporation. I was wondering if there are different write offs/percentages that can be claimed as a tax deduction based on your business type (sole proprietor vs corporation)
If you're not sure which one to choose, that's when I'd suggest talking with a CPA to go over your options. In general the business write-offs remain the same, but how you claim them may differ depending on if you're a corporation or sole proprietor (for example, business use of home expenses www.ontariobusinesscentral.ca/blog/can-i-use-my-home-as-a-business-expense/#:~:text=Does%20it%20matter%20if%20your,a%20sole%20proprietorship%20or%20incorporated.)
Thanks for the video! Would the software help with book keeping your expenses and your in/out of a corporation? Or is it something to add to something such as quickbooks?
Yes, it's accounting software and would help you track your expenses and cash flow. The software is free so you can make an account and give it a test drive yourself to see what it's all about.
Just to clarify, "Office Expenses" include pens, paper clips and so on while "Office supplies" includes software subscriptions, etc. To me, those labels infer the opposite. Pens seem more like a supply than an expense and accounting software seems like more of an expense than a supply?
Hey Jessica, what software would you suggest for self-proprietor to keep track of income/tax/deductions? And also which can help to submit taxes when time comes? Would be great to see a video on this topic with a demo! Cheers !
So you would use two different software programs for bookkeeping and then income tax filing. You obviously can try out ReInvestWealth for your bookkeeping since the base platform is free, or you can do it old-school manually with a spreadsheet but that obviously will take up much more time. For submitting your taxes, you can either go through an accountant and then they prep/file your taxes for you. Or you can use a software like Turbotax, UFile, H&R Block, CloudTax, etc...
Hey Jessica, great video. I am in the process of shopping for a bank for my business. What banks do you recommend for lowest fees? What is your take on online banks like Tangerine with no business monthly fees?
Tangerine is a bit tricky because they don't offer Business Chequing accounts only Business Savings accounts which is a bit annoying. The good thing is most of the big banks offer no monthly fee business accounts, though they still charge you fees for certain transactions so always important to look at all the details. When I was a sole prop I use BMO's no fee account and liked it. Now I use Scotia largely for convenience because I also have a business credit card with them too, but it's minimal fees as well.
Love this great video! Are Udemy courses/online courses I enrolled for before starting/registering the business, for example, Accounting, bookkeeping, and web development courses related to my planned business, eligible as write-offs?
So those would likely be considered business start-up costs, in which case these are the rules: www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses/business-start-costs.html
This may provide more clarification, but you should include how many hours you use the space for business vs personal, and then the size of the space you use (which may require you to look at the square footage of your home vs. your space to find out the percentage such as 25% of your home you use for your office). www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/completing-form-t2125/business-use-home-expenses.html
Hey Jessica, love your content. If I work remotely in another counntry but pay taxes and employed in Canada, can i claim al these expenses I pay in the country I am in?
Keep coming back to your videos just to make sense of everything,, but I wanted to know more about insurance for you personal vehicle and work vehicles,, im a subcontractors for cleaning companies, have 3 different place to get to I travel around 120 km everyday round trips, and aside from that Gas/fuel cost can be written off? Do I have to sign up for gst/hst? Thank you for your time making the video s
Here are some examples of vehicle write-offs for your business, and insurance is one of them. turbotax.intuit.ca/tips/what-motor-vehicle-expenses-can-your-small-business-claim-1988 As for GST/HST, it depends on what your business revenue is and if you meet the requirements: ruclips.net/video/6WVle5QlFrM/видео.html
Hello Jessica, this is a great presentation kudos. But quick a question. i run a business(Incorporated) from home as an IT consultant(Remote from Home) , the company i consult for are based in another province, my question is can i buy a car or finance a car using my business and claim this as Tax deductions during tax filling for the year?'
Hi Seyi, you can purchase/lease a car under your company, however you can only deduct vehicle expenses in your tax return if the car is being used for business. As you are a full-time remote worker, you will likely not be able to claim any tax deductions unless you drive to go meet clients.
I'm so sorry for all the questions. I noticed I did not see meals and entertainment. Say I'm buying dinner for a client/potential client? Should that not be a category?
so helpful! do you have any resources explaining how to file capital items specifically, ie purchase of a new laptop or phone? or how to claim development courses?
hey! ive been watching your videos. Im from NL, thinking about starting a small business. a lot of which would involve driving. what would you suggest for minimizing my taxes and also making sure my company is kegal across other provinces. cheers!
Hey Jessica! I’m interested in starting my own corp. small biz; just wondering if my income stream for the business needs to be XXXX amount to claim write offs? I’m just worried, the first year i will be spending more into the business than what I generate… 🙏🏽🙏🏽 many thanks in advance
There is no income limit for write-offs. However, a write-off means you can deduct that amount from your taxable income, so if you don't earn any revenue, there's nothing to deduct those expenses from. Not only that, the expenses incurred in a business's fiscal year must be claimed against income earned in that year (you can't carry them forward to a future year). This is why it's best not to incorporate your business until your business is earning revenue, in general at least 6-figures.
Ok nice! Great advice, thanks Jessica! Can you write off health expenses, like physical and or mental therapy? And, can I write off the fee I pay for one of your budgeting templates?? ;) ;)
Great questions! You can write-off many medical expenses. For mental health, there are more restrictions. I've included a few resources for you www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/lines-33099-33199-eligible-medical-expenses-you-claim-on-your-tax-return.html#hw_clm and www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/lines-33099-33199-eligible-medical-expenses-you-claim-on-your-tax-return/authorized-medical-practitioners-purposes-medical-expense-tax-credit.html
You generally take into consideration the surface area of your workspace. Say if your home-office takes 15% of the total home, you can deduct 15% of your housing expenses on your taxes. (mortgage cannot be expensed, only rent).
What if I got approved of business funding and use it to expand my business? Would actively paying those funds lent out to me count as a business expense I can write off?
SO I bought a laptop for starting my business ( software Development Incorporation ). in 2022. but i registered my incorporation in 2023. Can i used it in write off ?
There's some more info here about that but here's what they say "You can deduct expenses that preceded the operation of the business. However, you can only claim expenses if you operated the business in the fiscal period in which the expense was incurred." www.bdc.ca/en/articles-tools/money-finance/manage-finances/tax-deductible-expenses
Hi Jessica, thanks for sharing this knowledge. My partner and I are self-employed that work from home. Do you know if we can both deduct (tax write-off) things like rent, internet, electricity, etc.? Thank you.
Thank you Jessica. If I am going to source products from the United State to resell them in Canada, do I need a business number (or import liscence)to do that?
Do you know if someone as a independant consultant for a company where i sell products for does that include to be able to claim expenses? Now i dont have a set amount i make a month though. I also just started selling clothing too would this be included to do this? Like do you have to also make a certain amount a year to claim anything?
Not really, especially since tax rules can change yearly so many books that are out there could already be out of date. Honestly, just getting more familiar with tax rules on the CRA website and then finding a good accountant. You could also take a few accounting courses though that may be a bit beyond what you want to do.
It's based on the percentage of your home you use for business. So if you use 10% of your home for business, you could claim 10% of your rent. You can find more details here turbotax.intuit.ca/tips/can-i-claim-a-tax-deduction-for-my-rent-3980
Hi Jessica, thanks for the video. Very informative. I have a RUclips channel and started getting paid through that from end of last year. First question, does it come under self employed? Other than tax return or tax submissions do I need to do any other paper work for my youtube channel? For example business registration or proprietorship or something else?
You'd be considered a sole proprietor. If your Google Adsense has your legal first and last name listed as the business name, then you're automatically a sole prop under your name and no need to register. When you file your taxes, you'll just need to report the income you've earned from Google Adsense on your tax return.
@@urmysalma3192 Yes, it would be considered self-employed income. Any tax software would walk you through it, but essentially you'd be paying tax on your business income minus any business deductions.
If you're a long haul trucker employed by a company, you can find more info here about tax deductions you may be eligible for turbotax.intuit.ca/tips/eligible-meal-and-lodging-expenses-for-truck-drivers-328. When you say owns a small business, do you mean long haul trucking so you are simply hired by companies on contracts but your a self-employed? If so, then that opens up more tax deductions for you in terms of writing off operating expenses.
In professional Dues if I have to use online subscriptions like video editing software, sound libraries, that are all subscription based are these things covered under the same category as a deduction/write off?
So subscription-based business expenses like video editing software and sound libraries I believe would fall under the category of office supplies, but yes they would be considered write-offs for your business (assuming you need these apps to run your business). For example, I use Adobe Premiere to edit these videos, and I write-off the subscription every year since I require the software to edit videos for my business.
You're considered a sole proprietor for tax purposes. Some more info here turbotax.intuit.ca/tips/gst-hst-reporting-requirements-for-food-delivery-services-11950 and turbotax.community.intuit.ca/turbotax-support/en-ca/help-article/self-employment-taxes/food-delivery-driver-expenses-claim/L1aAj7rux_CA_en_CA
I would highly recommend working with an accountant to help you create a payroll structure that best suits your business. There are also some great resources specific to farm businesses here: www.youtube.com/@FarmCreditCanada1/videos
Yes as long as they are reasonable smallbusinessbc.ca/article/guide-to-cra-approved-tax-deductions-in-canada/#:~:text=You%20can%20claim%20expenses%20for,directly%20related%20to%20your%20industry.
Is every dollar I spend towards write offs worth a dollar against my taxable income? So if i spent $6k for a business conference this year (flight, conference cost and hotel) does that mean i deduct $6k from my total taxable income? I get so confused by this 😕
Write-offs lower your gross income to help you arrive at your taxable income (the amount of income you are required to pay tax on). The tricky thing is not all business expenses can be written off 100% so it's important to keep your receipts for when you use tax software or an accountant to see how much of that expense you can write-off. For example, did you know that you can only write-off attending up to 2 conferences per year? You can find more details about this and other business deductions here www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses.html
This article gives a good example for figuring it out www.bdc.ca/en/articles-tools/money-finance/manage-finances/tax-deductible-expenses#:~:text=Business%20use%2Dof%2Dhome%20expense,expenses%20on%20your%20tax%20return.
Payment processing fees for accepting payments from customers online you mean? Ya, they can be pretty expensive. For example, Stripe charges 2.9% + C$0.30. So if you sold a $100 product to a customer, you'd have to pay Stripe $2.90 + $0.30, leaving you with $97 or 3% less than the customer's purchase price. And since it's a percentage, you're paying more the higher the pricepoint. On a $10,000 purchase, you're paying $290 in fees.
@@jessicamoorhouse I guess this is becoming more and more of a problem in this modern world. Thanks for all the hard work you do! I love your channel and will continue watching anything you put out. I've learned a lot from you already🙏
I've got some accountant suggestions here if you're looking for one, though the CPA Canada website also has a directory. jessicamoorhouse.com/favourite-things
Not sure what you're confused by. If you rent office space, that's considered a tax-deductible business expense. www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/completing-form-t2125/line-8910-rent.html If you run your business out of your home, you can claim it as a business-use-of-home expense www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/completing-form-t2125/business-use-home-expenses.html
Your videos are so informative. Canadian specific, thank you!
Thank you so much for watching!!!
Love the small bus content. More small bus info in podcast form would be great as well.
For sure, great idea!
@@jessicamoorhouse Hi Jessica, Can one claim cost of buying laptop to run IT consulting business ?
Thank you for sharing, I started my corporation almost a year ago and now I am learning what I need to have in order, this helps tons
Awesome!
I love the Seinfeld example!! Schitts Creek did a bit on tax write-off's that was supper funny too.
👍
Perfect amount of pink 💗
🤗
@@jessicamoorhouse channelling your inner Barbie💗
@@brndafay8518 Haha yes! The Barbie I wish existed when I was a kid instead of all the Pop Star Barbies or Fashionista Barbies. Money Expert Barbie!
@@jessicamoorhouse YES 🙂💗‼️
Btw, as a self-proprietor you can also write-off a half of CPP contribution (company's portion), family insurance premium, purchase of software/hardware (can be 100% or can be less, depends on a hardware)
oh, sorry. Wrote the comment before hearing `Office expenses`
:)
Great to have a Canadian perspective !
Thanks so much!
Thank you Jessica for the connection with Montreal’s Reinvest Wealth!! I have an appointment soon! I’m starting a counselling practice soon and this information is nil to me! I’m very excited now! Thank you so very much!!! ❤️
That's awesome!
Hey Jessica! New fan here. Thanks for the great info.
You're so welcome and thanks for supporting my channel!
This is a wonderful video Jessica, thank you for sharing. My question is, I'm just starting out, transforming my passion into my business, but I have purchased equipment for my business that goes back a few years. What is the rules on going back over my purchased recipes? Is there a limit to how far I can go back? My second question is, what qualifies as a recipe? Would bank statements showing rent payments qualify? And my 3rd question. If my business doesn't get off the ground, only making let us say, 1 dollar. Should I still put in my expenses?
For all business expenses, you need the receipts, you can't go off bank statements. And as far as what you can write off and how far back, the CRA specifies "To be able to deduct a business expense, you need to have carried on a business in the fiscal period in which the expense was incurred. Because of this, you have to be very clear about the date your business started." And as for claiming business expenses when your business isn't earning much or any money, this article is helpful groupenroll.ca/can-i-claim-business-expenses-without-income-in-canada/
Nice and helpful presentation. Thank you
Thank you!
This video could not have been posted with more perfect timing!
Question for you:
I’ve recently incorporated and pay professional dues. I usually have these as a tax deduction when filing my personal taxes… long story short I have two jobs (one as a professional contractor and one as an employee). Both require professional licensing and therefore fees. Can that be written off twice?
Thank you for all the great content!
@Bleh you can, if you have professional practice and libabilty fees to pay.
Wouldn't it be great to write-off the same expense multiple times!? Unfortunately, this is not the case and you can only use a tax deduction once. We recommend applying it where you have the highest tax rate. This is usually on your personal taxes as corporations have low tax rates. However, based on your comment, it seems like you are no longer self-employed and now working through a corporation, which means you will have to claim the professional fees in your corporate tax return.
Your business could refund you the money and write that off.
This was very helpful. Great video
I'm so glad, thanks for watching!
Thank you for this amazing info! You are incredible
Thanka!
Great video, love your podcast!
I'm so glad you liked it, and thanks for supporting the podcast!
What a brilliant video. Great advice, simple and practical.
Glad it was helpful!
Your hair looks really pretty 🫡
Super helpful video! I’ve just recently found you and am loving all the information as I start this side gig journey!!
Would purchasing one of your budget spreadsheet be considered an office expense or consulting write off?
Also, if I’m required to complete continuing education credits in the form of webinars and online courses (from companies that are not typical educational institutions), can those be considered tax deductible?
If you can prove it will help you operate your business or help you generate revenue, then yes it my spreadsheet could be used as a office expense that's tax deductible. And yes any courses or educational programming you must undertake to maintain or upgrade your skills for you business are tax deductible as well.
Good information, thank you.
Glad it was helpful!
Love your videos. Thanks for all you do. Question for you. Does commercial insurance cover damaged inventory say I have my office space and I sell clothing but it gets damaged because of a fire or flood?
Well done Jess!
Thank you!!!
Very helpful, thank you!
Thanks Matthew! :)
Hi Jessica, love these videos as I am currently setting up my business, and trying to decide on sole proprietor vs. corporation. I was wondering if there are different write offs/percentages that can be claimed as a tax deduction based on your business type (sole proprietor vs corporation)
If you're not sure which one to choose, that's when I'd suggest talking with a CPA to go over your options. In general the business write-offs remain the same, but how you claim them may differ depending on if you're a corporation or sole proprietor (for example, business use of home expenses www.ontariobusinesscentral.ca/blog/can-i-use-my-home-as-a-business-expense/#:~:text=Does%20it%20matter%20if%20your,a%20sole%20proprietorship%20or%20incorporated.)
Thanks for the video! Would the software help with book keeping your expenses and your in/out of a corporation? Or is it something to add to something such as quickbooks?
Yes, it's accounting software and would help you track your expenses and cash flow. The software is free so you can make an account and give it a test drive yourself to see what it's all about.
@@jessicamoorhouse great, I'll give it a try!
Just to clarify, "Office Expenses" include pens, paper clips and so on while "Office supplies" includes software subscriptions, etc. To me, those labels infer the opposite. Pens seem more like a supply than an expense and accounting software seems like more of an expense than a supply?
You can argue both ways. The important thing is that you expense your pens in one of those categories!
Hey Jessica, what software would you suggest for self-proprietor to keep track of income/tax/deductions? And also which can help to submit taxes when time comes? Would be great to see a video on this topic with a demo! Cheers !
So you would use two different software programs for bookkeeping and then income tax filing. You obviously can try out ReInvestWealth for your bookkeeping since the base platform is free, or you can do it old-school manually with a spreadsheet but that obviously will take up much more time. For submitting your taxes, you can either go through an accountant and then they prep/file your taxes for you. Or you can use a software like Turbotax, UFile, H&R Block, CloudTax, etc...
@@jessicamoorhouse thank you!
Hey Jessica, great video. I am in the process of shopping for a bank for my business. What banks do you recommend for lowest fees? What is your take on online banks like Tangerine with no business monthly fees?
Tangerine is a bit tricky because they don't offer Business Chequing accounts only Business Savings accounts which is a bit annoying. The good thing is most of the big banks offer no monthly fee business accounts, though they still charge you fees for certain transactions so always important to look at all the details. When I was a sole prop I use BMO's no fee account and liked it. Now I use Scotia largely for convenience because I also have a business credit card with them too, but it's minimal fees as well.
Brilliant! Thanks
Thank you!
Love this great video! Are Udemy courses/online courses I enrolled for before starting/registering the business, for example, Accounting, bookkeeping, and web development courses related to my planned business, eligible as write-offs?
So those would likely be considered business start-up costs, in which case these are the rules: www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses/business-start-costs.html
Awesome video! What percentage of home expenses are you able to write off? Half?
This may provide more clarification, but you should include how many hours you use the space for business vs personal, and then the size of the space you use (which may require you to look at the square footage of your home vs. your space to find out the percentage such as 25% of your home you use for your office). www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/completing-form-t2125/business-use-home-expenses.html
Hey Jessica, love your content. If I work remotely in another counntry but pay taxes and employed in Canada, can i claim al these expenses I pay in the country I am in?
Keep coming back to your videos just to make sense of everything,, but I wanted to know more about insurance for you personal vehicle and work vehicles,, im a subcontractors for cleaning companies, have 3 different place to get to I travel around 120 km everyday round trips, and aside from that Gas/fuel cost can be written off? Do I have to sign up for gst/hst? Thank you for your time making the video s
Here are some examples of vehicle write-offs for your business, and insurance is one of them. turbotax.intuit.ca/tips/what-motor-vehicle-expenses-can-your-small-business-claim-1988 As for GST/HST, it depends on what your business revenue is and if you meet the requirements: ruclips.net/video/6WVle5QlFrM/видео.html
Hello Jessica, this is a great presentation kudos. But quick a question. i run a business(Incorporated) from home as an IT consultant(Remote from Home) , the company i consult for are based in another province, my question is can i buy a car or finance a car using my business and claim this as Tax deductions during tax filling for the year?'
Hi Seyi, you can purchase/lease a car under your company, however you can only deduct vehicle expenses in your tax return if the car is being used for business. As you are a full-time remote worker, you will likely not be able to claim any tax deductions unless you drive to go meet clients.
That was probably the first topic I investigated :)) lol
I'm so sorry for all the questions. I noticed I did not see meals and entertainment. Say I'm buying dinner for a client/potential client? Should that not be a category?
so helpful! do you have any resources explaining how to file capital items specifically, ie purchase of a new laptop or phone? or how to claim development courses?
I don't but this article may help for the capital cost allowance turbotax.intuit.ca/tips/what-is-capital-cost-allowance-cca-14405
For bank and processing fees, when I purchase products from my supplier, I pay a processing fee. Do I get to include that also?
of course! processing fees are always deductible.
hey! ive been watching your videos. Im from NL, thinking about starting a small business. a lot of which would involve driving. what would you suggest for minimizing my taxes and also making sure my company is kegal across other provinces. cheers!
Hire a CPA and possibly a lawyer to make sure your business is set up properly and they can help you make a specific tax plan for your business.
Hey Jessica! I’m interested in starting my own corp. small biz; just wondering if my income stream for the business needs to be XXXX amount to claim write offs? I’m just worried, the first year i will be spending more into the business than what I generate… 🙏🏽🙏🏽 many thanks in advance
There is no income limit for write-offs. However, a write-off means you can deduct that amount from your taxable income, so if you don't earn any revenue, there's nothing to deduct those expenses from. Not only that, the expenses incurred in a business's fiscal year must be claimed against income earned in that year (you can't carry them forward to a future year). This is why it's best not to incorporate your business until your business is earning revenue, in general at least 6-figures.
@@jessicamoorhouse Losses in a corporation can be carried forward 20 years to cover future income. Losses can also be carried back 3 years.
Great video
Thanks!
Ok nice! Great advice, thanks Jessica!
Can you write off health expenses, like physical and or mental therapy?
And, can I write off the fee I pay for one of your budgeting templates?? ;) ;)
Great questions! You can write-off many medical expenses. For mental health, there are more restrictions. I've included a few resources for you www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/lines-33099-33199-eligible-medical-expenses-you-claim-on-your-tax-return.html#hw_clm and www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/lines-33099-33199-eligible-medical-expenses-you-claim-on-your-tax-return/authorized-medical-practitioners-purposes-medical-expense-tax-credit.html
@@jessicamoorhouse ok great 👍🏾!
That’s good to know.
Thanks so much for sharing the information!
I will definitely check those out 👍🏾
😊
How do you determine the percentage of your housing expenses that you can use to be written off?
You generally take into consideration the surface area of your workspace. Say if your home-office takes 15% of the total home, you can deduct 15% of your housing expenses on your taxes. (mortgage cannot be expensed, only rent).
What if I got approved of business funding and use it to expand my business? Would actively paying those funds lent out to me count as a business expense I can write off?
No, you can't write off principle payments on a business loan, but you can write off interest you pay on that loan.
SO I bought a laptop for starting my business ( software Development Incorporation ). in 2022. but i registered my incorporation in 2023. Can i used it in write off ?
There's some more info here about that but here's what they say "You can deduct expenses that preceded the operation of the business. However, you can only claim expenses if you operated the business in the fiscal period in which the expense was incurred." www.bdc.ca/en/articles-tools/money-finance/manage-finances/tax-deductible-expenses
@@jessicamoorhouse Thanks Jessi... 🙏🏻 Namaste
Hi Jessica, thanks for sharing this knowledge. My partner and I are self-employed that work from home. Do you know if we can both deduct (tax write-off) things like rent, internet, electricity, etc.? Thank you.
Yes but only a percentage of what you each use for your business.
You can write off 10% for an home office for heat, electricity and water I think.
Can't you expense professional fees even if you're a sole proprietor though l
Yup! www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/completing-form-t2125/line-8860-legal-accounting-other-professional-fees.html
Thank you Jessica. If I am going to source products from the United State to resell them in Canada, do I need a business number (or import liscence)to do that?
Do you know if someone as a independant consultant for a company where i sell products for does that include to be able to claim expenses? Now i dont have a set amount i make a month though. I also just started selling clothing too would this be included to do this? Like do you have to also make a certain amount a year to claim anything?
so what was the difference between office expense vs office supply? supply is subscriptions to services and expenses are stationary etc?
Hey Jessica, can you recommend any resources/ books to learn about tax mitigation strategies for Canadian Business owners? Thanks!!
Not really, especially since tax rules can change yearly so many books that are out there could already be out of date. Honestly, just getting more familiar with tax rules on the CRA website and then finding a good accountant. You could also take a few accounting courses though that may be a bit beyond what you want to do.
thanks, I appreciate your insight!@@jessicamoorhouse
Could you please specify what percantage of my rent payment i may write off, working from home, thanks
It's based on the percentage of your home you use for business. So if you use 10% of your home for business, you could claim 10% of your rent. You can find more details here turbotax.intuit.ca/tips/can-i-claim-a-tax-deduction-for-my-rent-3980
Hi Jessica, thanks for the video. Very informative. I have a RUclips channel and started getting paid through that from end of last year. First question, does it come under self employed? Other than tax return or tax submissions do I need to do any other paper work for my youtube channel? For example business registration or proprietorship or something else?
You'd be considered a sole proprietor. If your Google Adsense has your legal first and last name listed as the business name, then you're automatically a sole prop under your name and no need to register. When you file your taxes, you'll just need to report the income you've earned from Google Adsense on your tax return.
@@jessicamoorhouse Thanks for your response. Do I do the tax return showing it as a business income?
@@urmysalma3192 Yes, it would be considered self-employed income. Any tax software would walk you through it, but essentially you'd be paying tax on your business income minus any business deductions.
@@jessicamoorhouse Thank you ❤️
Hi, can you make video on write off for long haul truck driver? Who owns small business?
If you're a long haul trucker employed by a company, you can find more info here about tax deductions you may be eligible for turbotax.intuit.ca/tips/eligible-meal-and-lodging-expenses-for-truck-drivers-328. When you say owns a small business, do you mean long haul trucking so you are simply hired by companies on contracts but your a self-employed? If so, then that opens up more tax deductions for you in terms of writing off operating expenses.
Question about website and hosting. Can I get that going before I have a business?
Yes absolutely, especially if you just plan on being a sole proprietor, you can claim those expenses on your tax return as business write-offs.
What if you’re still working a day job. Will the business your running on the side deduct from ALL your income?
In professional Dues if I have to use online subscriptions like video editing software, sound libraries, that are all subscription based are these things covered under the same category as a deduction/write off?
So subscription-based business expenses like video editing software and sound libraries I believe would fall under the category of office supplies, but yes they would be considered write-offs for your business (assuming you need these apps to run your business). For example, I use Adobe Premiere to edit these videos, and I write-off the subscription every year since I require the software to edit videos for my business.
What about writing off credit card annual fees?
Yes www.finlywealth.com/blog/business-credit-cards-and-tax-deductions
Is being a contractor on Instacart or DoorDash considered a small business or do they fall under different laws?
You're considered a sole proprietor for tax purposes. Some more info here turbotax.intuit.ca/tips/gst-hst-reporting-requirements-for-food-delivery-services-11950 and turbotax.community.intuit.ca/turbotax-support/en-ca/help-article/self-employment-taxes/food-delivery-driver-expenses-claim/L1aAj7rux_CA_en_CA
My husband and I are about to purchase/succeed an established farm business do you have anything about paying yourself as a sole prop?
I would highly recommend working with an accountant to help you create a payroll structure that best suits your business. There are also some great resources specific to farm businesses here: www.youtube.com/@FarmCreditCanada1/videos
Is it better from a tax purpose to get a loan from the bank and buy a work vehicle or fiance it through the dealership?
This should help answer your question turbotax.intuit.ca/tips/should-i-buy-or-lease-my-new-business-vehicle-7668
Awesome
Thanks!
Wait so can you write all these offs if you are a sole proprietor or corporate?
These write-offs are for any type of business type (sole prop, partnership, corp).
Can sole proprietor business do write-offs as well
Yes, sole proprietors can write-off business expenses.
Can you write off education that will help grow the business?
Yes as long as they are reasonable smallbusinessbc.ca/article/guide-to-cra-approved-tax-deductions-in-canada/#:~:text=You%20can%20claim%20expenses%20for,directly%20related%20to%20your%20industry.
Is every dollar I spend towards write offs worth a dollar against my taxable income? So if i spent $6k for a business conference this year (flight, conference cost and hotel) does that mean i deduct $6k from my total taxable income? I get so confused by this 😕
Write-offs lower your gross income to help you arrive at your taxable income (the amount of income you are required to pay tax on). The tricky thing is not all business expenses can be written off 100% so it's important to keep your receipts for when you use tax software or an accountant to see how much of that expense you can write-off. For example, did you know that you can only write-off attending up to 2 conferences per year? You can find more details about this and other business deductions here www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses.html
How do you find the percentage you can write off for business use of home expenses?
This article gives a good example for figuring it out www.bdc.ca/en/articles-tools/money-finance/manage-finances/tax-deductible-expenses#:~:text=Business%20use%2Dof%2Dhome%20expense,expenses%20on%20your%20tax%20return.
So carpentry tools fall under capital items?
Correct turbotax.community.intuit.ca/community/getting-started/discussion/i-am-a-self-employed-carpenter-where-do-i-enter-tool-expenses/00/912997
Does it work if the income was cash
Well since you need to declare all income, including if it's in cash, yes.
Are these processing fees so bad??
Payment processing fees for accepting payments from customers online you mean? Ya, they can be pretty expensive. For example, Stripe charges 2.9% + C$0.30. So if you sold a $100 product to a customer, you'd have to pay Stripe $2.90 + $0.30, leaving you with $97 or 3% less than the customer's purchase price. And since it's a percentage, you're paying more the higher the pricepoint. On a $10,000 purchase, you're paying $290 in fees.
@@jessicamoorhouse I guess this is becoming more and more of a problem in this modern world. Thanks for all the hard work you do! I love your channel and will continue watching anything you put out. I've learned a lot from you already🙏
@@edwardsfamilyworkshop Thank you!!!
Hey! Thank you so much for this video. Do you share your accountant's contact info? I'd love to contact them.
I've got some accountant suggestions here if you're looking for one, though the CPA Canada website also has a directory. jessicamoorhouse.com/favourite-things
cute and smart, deadly combination
Write-offs is the wrong term
The term “write-off” is interchangeable with the term “tax deduction” which is what this video is about.
why say your rent is a deduction - more to the point approx. 20% is.....not the other 80% -
you are not so professional.
Not sure what you're confused by. If you rent office space, that's considered a tax-deductible business expense. www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/completing-form-t2125/line-8910-rent.html
If you run your business out of your home, you can claim it as a business-use-of-home expense www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/completing-form-t2125/business-use-home-expenses.html
Does reinvestwealth work for replacing QuickBooks? QB is getting expensive for myself as a small business.
Correct its accounting software just like Quickbooks.
Thank you so much Jessica for this very informative video. Really appreciate. And agree with @jaredvincent 1067 for a video specific to podcast ❤🙏
Thanks for watching!