Commercial Insurance
Any commercial insurance premiums
on building and equipment that are being used in your business, you can deduce
these, applicable under home-based business insurance. It must be noted here
that home based business insurance is different from home insurance and former
is commercial while latter is personal in nature. So if you are operating your
business from home, getting a business insurance and having it deduced is a
good idea.
Use of personal vehicles
Many business owners who work
from home use their personal vehicles for business use. In that case, you can
write off a portion of your automobile expenses like fuel costs, licensing,
insurance, maintenance, repair costs, and also to some extent the interest on
money you borrowed to purchase that vehicle. It's important to keep a separate
track of home and business use of your vehicles like the kilometers driven for
business purpose and so on.
Property Taxes and Mortgage Interests
This also comes under home based
expenses. You can deduce a part of your property tax and rent or mortgage you
are paying on your home if your home is also your business sphere or you've
separately rented an accommodation for business purpose. Use the chart to
calculate business use of home expenses given by CRA for the purpose.
Miscellaneous Expenses
Besides mortgage payments and
property taxes, there are numerous small expenses incurred such as cost of
heating the structure, power usage, maintenance, plumbing, internet for
commercial use and so on. A part of these miscellaneous expenses can be
deduced. You must maintain receipts, sales invoice or any voucher that
substantiates your claim.
You can accrue these benefits
If you haven't claimed your
Capital Cost Allowance Claim, then you can get carry forward the claims
indefinitely and accrue the deductions. You can use these when your expenses
surpass your income. CRA calls it the unused work space in home expenses.
Therefore, small, home based
business owners can claim a multitude of benefits at the time of Corporation
Tax Return Filing. For more info on how to go about these claims, visit Z Rahman Professional Corporation, the tax experts
in Scarborough.
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