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New Member
posted Dec 30, 2022 2:32:40 PM

Do I put in business expenses with or without taxes included?

When entering business expenses (e.g., advertising costs) do I enter the total including the HST or the pretax total?

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1 Replies
Intuit Alumni
Jan 3, 2023 11:55:13 AM

As per the Canada Revenue Agency (CRA) Expenses section of Form T2125: Generally, you can deduct any reasonable current expense you incur to earn business income. The expenses you can deduct include any GST/HST you incur on these expenses, minus the amount of any input tax credit claimed. However, since you cannot deduct personal expenses, enter only the business part of expenses on the form T2125, Statement of Business or Professional Activities.

If you claimed having paid the GST elsewhere, do not include it in the amount of the expenses.

 

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