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Staring your own business can have some significant tax advantages. And that applies to your moneymoves franchise. A comprehensive list can be found here.
What Expenses Can I Deduct?
Although the best resource for determining what expenses qualify as eligible deductions, the following categories are generally acknowledged as appropriate deductions:
Home Office
The portion of your home that is used for your active business including:
See CRA publication: Business Use of Home Expenses.
Meals and Entertainment
Those expenses incurred in the sales and marketing efforts relating to your franchise are tax deductible.
See CRA publication: Meals and Entertainment
Automobile and Travel
If you use your car in your business, you can deduct a portion of:
As long as those expenses are in support of earning income for your franchise, you can deduct them!
See CRA publication: Business use of a Motor Vehicle
Remember: It’s not unusual for a business to operate at a loss in the start-up phase. The good news is that a loss incurred by a sole proprietor business (a franchise) can be deducted against your ordinary salaried income!
This will reduce your taxable income from other sources until your franchise is profitable!
You can claim business losses as a sole proprietor or partner using the T1 tax return and filling out Form T2125, Statement of Business or Professional Activities.
See CRA publication: T2125 Statement of Business or Professional Activities
Discover the benefits of being your own boss, working on your schedule and building enterprise value for you and your family…
Motorcycles, ATVs, Snowmobiles, PWCs, RVs and Trailers.
Appliances, furniture, pools and hot tubs, HVAC, water purification, windows and doors.
Cosmetic surgery, dental
Let our experienced team help plan your next financial move…