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Sole Proprietorship Cheat Sheet

KEEP RECEIPTS – Can claim start up expenses, and you do not HAVE to have income to get started.

General Expenses:

  • Advertising, Promotion (meals with clients, giveaways, free product, advertising) – 100%
  • Meals – 50%
  • Insurance – 100%
  • Business fees, licenses, dues, memberships subscriptions – 100%
  • Personal and Professional Development– 100%
  • Office Expenses -100%
  • Supplies/Purchases (Cost of goods) – 100%
  • Legal, accounting and professional fees – 100%
  • Rental – office space NOT home – 100%
  • Maintenance and repairs – Equipment or rental office space – 100%
  • Travel Expenses – 100%
    • Includes Seminars, courses, events, (local, national and international)
      • Flights, accommodations, Car Rentals, Fuel, Meals etc
    • Local Travel more than 30 KM away from your home: Meals normally 50% into 100% and all vehicle expenses at 100%
  • Telephone (Cell Phone, Home phone & Internet) – 100%
  • Delivery, freight, postage – 100%
  • 20-30% Capital Cost Allowance Build an Asset List
    • -Tools, equipment, computer, printer, etc valued over $500.00

Home Expenses:

General rule is 20% per year.

(Don’t stress about sq footage, if you want to claim higher, measure sq ft)
Exceptions are: Dayhomes eligible for up to 60%

  • Utilities and Condo Fees
  • Mortgage Interest Only/Rent payments
  • Insurance (Home or renter)
  • Maintenance and repairs (Functional: Furnace, windows, roof, siding etc… no cosmetics)
  • Property Taxes

Vehicle Expenses

1. By KM – flat rate (don’t need to keep receipts, lower generally – but simple)

  • Requires fuel log — $.56/km for first 5000 kms, $.48/km for anything above
  • You do not claim any individual receipts, but you can claim depreciation.

2. By Expenses– Keep receipts (30-60%) of totals

  • Fuel
  • Leasing Interest (10$x days the lease was active, for vehicles bought after 2000)
  • Insurance
  • License and Registration
  • Functional Maintenance and Repairs
    • Oil changes, Tires, Windshield, Non accident damages
  • 30% Depreciation (Capital Cost Allowance) – Need a Bill of sale for vehicle
    • Or Make/Model/Year of vehicle, when it was bought and how much you paid for it.

startup-photos55

Rental Property Checklist

Property address
Date the property first earned rental income
Ownership percentage per owner
Schedule 776 from prior year’s tax return

CURRENT YEAR INFORMATION 

Was there a change in purpose for any properties during the financial year, such as:
 Family home becomes rental property, or
 Rental property becomes family / holiday home?
 Was the property rented for the entire year?
 If not, provide details of periods of vacancy (i.e. dates and reason)
Were there any changes in ownership?

RENTAL INCOME 

 Annual summary from agent, or summary of rents received
 Insurance compensation received

RENTAL EXPENSES 

 Advertising costs, agent fees and commissions
 Property taxes
 Cleaning costs, gardening costs, pest control
 Condo/strata fees
 Office expenses, postage
 Loan Interest, property insurance, bank charges
 Legal and accounting fees.
 Repairs and maintenance
 Travel for rent collection, inspection of property, maintenance etc.
 Utilities
 Capital Costs (expenditures that are deductible over a number of years – e.g., kitchen
appliances, washer/dryer, furniture, building improvements or renovations)

SALE/PURCHASE 

 Sale Contract
 Agent Commissions
 Legal & Search Fees
 Advertising Costs
 Mortgage penalty fees
 Original purchase contract

EMPLOYMENT EXPENSES CHECKLIST

If your employer requires you to pay expenses in order to earn income, this checklist will assist you in providing the relevant information and supporting documentation needed.

REQUIRED SCHEDULES 

 T2200 form completed and signed by your employer for each taxation year
 If you drive to earn employment income, a detailed kilometer log (see attached sample)
is required for each vehicle:
o Starting and ending odometer reading
o Date of each business trip
o Starting and ending address for each business trip (do NOT include driving to
your main office from home or back – this is considered personal by CRA)
o Number of kilometers for each trip
o Reason for each trip
 There are many apps you can use instead of pen & paper (i.e. MileIQ, QBO) that will do
your tracking for you
 If you are a transportation employee (i.e. long-haul truck driver), your employer may fill
out a TL2 form instead – in this case, you will be required to keep a log of how many days
you are out of town

ALLOWABLE DEDUCTIONS 

Depending on what your employer has filled out on the T2200 form, you may be eligible to deduct the following expenses:
 Accounting and legal fees
 Advertising and promotion
 Allowable motor vehicle expenses (see more below)
 Food, beverages, and entertainment expenses
 Lodging
 Parking
 Supplies (for example, postage, stationery, other office supplies)
 Other expenses (commonly cell phone, please specify)
 Tradesperson/Apprentice mechanic tools expenses, up to a maximum of $500, after a deductible
 Musical instrument expenses
 Artist’s employment expenses
Office in Home Expenses: Do you work at least 50% of the time at home? What percentage of your home is used for business?
 Rent, condo fees/strata
 Tenant or home insurance (commission employees only)
 Property taxes (commission employees only)
 Repairs, maintenance, cleaning service, lawn service
 Utilities
Vehicle Expenses: Please provide year/make/model of vehicle, purchase date and cost
 Gas & Oil
 Car Wash
 Maintenance

 Loan Interest or Lease amount
 Insurance

Free Personal Income Tax Checklist

2018/2019 Personal Tax Prep Video

 

How Do I Pay Myself?

If you’re confused, it’s okay! Here’s the answer!

When Should I Incorporate My Business?

GST & Your Small Business

Commonly Missed Tax Deductions