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  • May 17th, 2006 10:15 pm
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[OP]
Deal Addict
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Aug 26, 2003
4062 posts
26 upvotes

Tax deductibles

Say for a home business, how to do tax deductibles for the followings items that is related to the business?

- Computers (100% for business use)
- Internet (partly used for business communication)
- Utilities
- Car (sometime used for business, mainly for deilvery goods)
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3 replies
Deal Fanatic
Feb 1, 2006
9498 posts
622 upvotes
Muskoka
Yes, all of those, and more, are deductions proportionately for business use.
Newbie
Mar 9, 2006
46 posts
3 upvotes
You should estimate the amount of each that is used for your business. Depending on the business you are in you may be able to justify a higher percentage for certain expenses. You should consult an accountant so you can maximize your deductions. Here are some things to look at (simplified version):

Car - You should keep a milage log for your business trips. And from that you can determine the percentage. For example, if you drive 20,000 KM that year and 10,000 of it is for business use then you claim 50% of the expenses you incurred for operating the car. There are other ways to calculate it as well which involves the depreciation of the vehicle and $ per KM.

Home - One way to determine the percentage is to take the amount of space you occupy as your home office. If you occupy 1/4 of the house as your home office you may be able to claim 25% of your utilities.

In case you don't know, you will not be able to claim 100% of your computer as expense in the first year. But rather, you will need to depreciate it.

Hope that helps. You should really consult an accountant so that you do everything correctly. Especially if this is your first time around.
Deal Addict
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Apr 4, 2003
4718 posts
100 upvotes
Oakville
If one puts advertising on the car (car wrap, magnetic sign or vinyl lettering), what percentage can one charge back or expense as promotional cost.

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