Sole Proprietorship Cheat Sheet
KEEP RECEIPTS – Can claim start up expenses, and you do not HAVE to have income to get started.
(Don’t stress about sq footage, if you want to claim higher, measure sq ft)
Exceptions are: Dayhomes eligible for up to 60%
1. By KM – flat rate (don’t need to keep receipts, lower generally – but simple)
2. By Expenses– Keep receipts (30-60%) of totals
Rental Property Checklist
Date the property first earned rental income
Ownership percentage per owner
Schedule 776 from prior year’s tax return
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?
Annual summary from agent, or summary of rents received
Insurance compensation received
Advertising costs, agent fees and commissions
Cleaning costs, gardening costs, pest control
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.
Capital Costs (expenditures that are deductible over a number of years – e.g., kitchen
appliances, washer/dryer, furniture, building improvements or renovations)
Legal & Search Fees
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.
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
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
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
Vehicle Expenses: Please provide year/make/model of vehicle, purchase date and cost
Gas & Oil
Loan Interest or Lease amount
If you’re confused, it’s okay! Here’s the answer!