Tax Deductible Expenses

Tax deductible expenses reduce our net and taxable incomes. By increasing our deductions we can reduce the amount of taxes otherwise payable.

Tax payers can be divided into two main tax groups The employed and the self employed. The self employed can be further divided into the un-incorporated and the incorporated

The following are just a few of the most common deductible expenses available

Individuals

  • Registered or employer funded retirement plan deductions

  • Retirement Savings Plans

  • Union and professional dues

  • Child care expenses

  • Employment expenses

  • Exploration and research

  • Support payments made ( if applicable)

  • Disability supports deduction

  • carrying charges and interest expenses

  • Moving expenses

  • Business investment loss

  • Non capital losses of other years

  • Net capital losses of other years

  • Capital gains deduction

Un-incorporated Businesses

In addition to the entitlements of the individual taxpayer, Sole proprietors or small business owners (these may include, freelancers, professionals, home based businesses, network marketers, independent distributors etc) may be able to deduct:

  • Motor vehicle expenses

  • Business travel and accommodation

  • Home use deductibility

  • Bank charges

  • Telephone and utilities

  • Meals and entertainment

  • Advertising and Marketing

  • Rent, Salaries  and wages

  • Professional development

  • Business training and seminars

  • Office expenses

  • Memberships and subscriptions

  • Internet expenses including website and Domain hosting

  • Supplies expenses

Corporations

Risk management or protection against liability may be one of the main reasons why individuals choose to incorporate, but there is also a tax advantage in owning a corporation

  • Lower tax rate than most tax payers

  • Deference of taxes payable, more control over when income received.

  • Receive incomes with preferential tax treatment, more control over the types of income received

  • Options as to where income taxed, more control over how much income received

  • Ability to participate in high income tax shelters

  • Transferable, separate entity

  • Can be effective vehicle to use in estate planning


Higher tax deductions help to offset the increased risks that businesses take to produce taxable incomes. These are divided between the business profits and indirectly through the individuals' earnings.

 As you can see the tax deductions increase as you go from an individual to a business

Businesses leverage the productivity of many individuals to create wealth and can earn considerably more than the individuals they employ. Many of the world's wealthiest people own a business or company

Common Tax mistakes

Financial Planning

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