If you are self-employed, you can deduct all expenses incurred in the conduct of your business as long as the expenses are undertaken to earn income.
Self-employment expenses should be reasonable and must be documented. Lack of proof to support your claim may result your expenses to be disallowed or lead to tax penalties.
Business expenses may include all or part of the following:
- Accounting and tax return preparation fees
- Advertising expense
- Allowance on eligible capital property such as goodwill, license, franchises, and etc
- Bad debts
- Business start-up costs
- Business taxes, fees, licenses, dues, memberships and subscriptions
- Capital costs allowance on depreciable properties such as equipment, computer, etc.
- Computer and other equipment leasing costs
- Consulting fees
- Convention expenses (maximum 2 conventions a year)
- Courses taken to improve business skills
- Delivery, freight, and express
- Disability-related modifications
- Insurance premiums (commercial insurance such as liabilities, fire, and theft)
- Interest incurred on money borrowed for business purposes
- Legal fees
- Maintenance and repair
- Management and administration fees including bank charges
- Meals and entertainment (50% is eligible)
- Office expenses such as stationary, stamps, and etc
- Private health and dental insurance premium
- Property taxes incurred for property used in your business
- Rent
- Salaries and wages paid to employees
- Subcontractors’ costs
- Supplies and materials
- Telephone
- Traveling expenses
- Utilities, such as heat, electricity, and water
- Motor-vehicle expenses
- Business-use-of home expenses
Deductible Motor Vehicle Expense
Home Office Expenses
Capital cost allowance
