Business-related expenses help lower taxes - MoneySense

Business-related expenses help lower taxes

Self-employed can take advantage of numerous tax breaks.

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While the stress of operating your own business can sometimes be overwhelming, Canada’s self-employed workers are being encouraged to take advantage of the numerous tax cuts offered by claiming business-related expenses.

These expenses, which are usually deductible if they were used to earn further income for your business and are deemed reasonable, can include things like taking a client out for dinner – although you can only claim 50% of the bill – plane tickets and home office costs. In addition, workers are allowed to expense $1,500 on supplementary health care coverage for themselves and their spouses, and $750 for each child.

Since there are a number of rules and exceptions involved, experts are pushing self-employed workers to be familiar with all of the legitimate expenses available to them.

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