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posted Apr 22, 2021 5:51:27 AM

Can I claim mileage expenses, rent, internet costs, mobile phone costs and office expenses for my private pet care business?

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Level 6
May 5, 2021 10:36:30 AM

Thank you for choosing TurboTax,

 

1.Mileage Expenses

 

When you’re self-employed, or have self-employed income, the Canada Revenue Agency (CRA) allows you to take a deduction for the mileage or number of kilometers you rack up in your vehicle for business-related activities.

To calculate your deduction properly, you’ll need to keep track of your trips throughout the year, and also hang on to any receipts for vehicle-related purchases. While you won’t need to send these in with your return when you file, you will need to keep these documents with your tax records in case the CRA ever wants to know how you calculated your deduction.

 

Please visit our TurboTax article on How to Deduct Mileage If You Are Self-Employed to learn about mileage deduction.

 

2. Rent

As per CRA, you can deduct rent incurred for property used in your business. For example, you can deduct rent for the land and building where your business is situated.

The rent expense related to business use of workspace in your home has to be claimed as business-use-of-home expenses.

 

3. Mobile phone costs, internet costs

 

You can deduct your cell phone and internet costs as a business expense from your business income, you can note your costs on Form T2125, Statement of Business and Professional Activities. This form helps you calculate your net business income. 

If you use your cell phone and internet for both personal and business use, you can only claim a portion of its cost as a business expense.

For more information on business expenses, see the CRA Business Expenses section and Tax Tip: Cell phone expenses for self-employed individuals and small business owners 

 

4. Office Expenses

As per CRA, you can deduct office supplies as a business expense.

 

Please visit the article on Supplies - Employment expenses to learn more about which office supplies are deductible.