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New Member
posted Mar 8, 2023 7:40:23 AM

Do I include all business expenses in my personal taxes or just the expenses I paid personally?

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2 Replies
Level 15
Mar 14, 2023 11:37:50 AM

When you complete your tax return you will be on the sections of self-employment T2125 you will enter all your business information there including all your business expenses. 

 

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Level 4
Mar 16, 2023 7:05:44 AM

You can deduct eligible business expenses from your business income when you file your personal income tax return. However, you should only deduct the expenses that you paid for out of your own pocket or from your business account. You cannot deduct expenses that were paid for by someone else or that were reimbursed to you.

When claiming business expenses on your personal tax return, you should keep accurate records of all your business expenses, including receipts, invoices, and other supporting documents. You should also ensure that the expenses you claim are eligible expenses according to the Canada Revenue Agency (CRA) guidelines. 

Business expenses

It's also important to note that if you're self-employed, you'll need to fill out a separate tax form called a T2125 Statement of Business or Professional Activities to report your business income and expenses.

For more information, please see a few our TurboTax FAQ below.

Tax Deductions for the Self-Employed

What Kind of Expenses Can You Claim for Your Small Business?

Filing Taxes as a Self-Employed Small Business Owner

All the business-related information is entered into the

 

T2125, Statement of Business Activities,

Thank you for choosing TurboTax.