What Small Businesses and Self-Employed Individuals Can Claim

There are a number of deductions and business expenses that can be claimed to lower taxes payable or increase tax refunds.

In order to get all these deductions, a significant amount of time is required in putting together all the receipts and expense information.

For that reason, anyone with a self-employed business has until June 15th, to file their taxes if they are not owing.

Things that you can deduct as costs of business are:

Maintenance and Repair Costs: Full costs of any maintenance and repairs done on the property that is used to earn income can be deducted. This includes office or work space, or if using a home office, then any repairs done in that space can also be deducted.

Professional Fees: Accountant, bookkeeper and lawyer fees are deductible for tax purposes

Insurance Expenses: Any type of business expense, such as errors and omissions insurance, insurance on the building or machinery and equipment are eligible. Life insurance is not eligible, nor is auto insurance unless the auto is being used for business purposes.

Interest and Bank Charges: Many people miss out on claiming these amounts. Interest and bank charges are a cost of doing business and interest paid on amounts borrowed do add up. These amounts can always be deducted against income.

Business Taxes, Business Related Dues, Memberships and Subscriptions: In addition to being able to claim business taxes and business related dues, amounts paid for memberships and subscriptions can also be deducted. This includes any professional organizations that you are registered with that relate to the nature of your business.

Business Use of Residence Deductions: Space used in a home on a regular and continuous basis, and exclusively for earning income can be claimed. The deductions relating to the business use include a percentage of repairs and maintenance of that space, telephone, utilities, etc, can be claimed. One important thing to keep in mind when claiming expenses is that there should always be receipts to back up the expenses.

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