What expense can IT / Consultant claim to save taxes?
What expense can IT / Consultant claim to save taxes?
You can claim following Business Expenses:
- Subcontracting Expense - Subcontracting expense paid to other companies, up work, outsourcing fees etc.
- Software Expense - Microsoft office, accounting software, google workspace etc.
- Training Expense - Any IT course taken online, classroom for development of skills.
- Referral Expense - Any commission given to friends, family, other companies to obtain leads, customer or business.
- Equipment Purchase - Computer, mobile phone purchase, server purchase, furniture and fixatures etc.
- Advertising and Promotion - Online Advertisement, Banners, posters, Gifts given to customers, Christmas gifts etc.
- Business start-up costs - Incorporation cost, license fee, Master Business License fees, Certification etc.
- Licenses and dues - Professional Certification, License fees etc.
- Interest and bank charges
- Insurance - commercial insurance premiums for machinery, buildings and equipment
- Maintenance and repairs - Expenses incurred for home office, office repairs, car repairs etc.
- Office expenses - stationery such as pencils, pens, office tools
- Salaries, wages and benefits (including employer's contributions.
- Rent - Office Rent. (If working from home, we can take % of used based on sq feet and claim proportionate expense
Home office Expense:
Since you will be using your home space for personal use, we cannot claim 100% of home expense as home office expense.
Best advice to pay these expenses via personal bank and visa onlyand at the end, we can allocate 20%-50% as business use of home and claim proportionate business expense.
- Heat
- Electricity
- Insurance
- Maintenance
- Mortgage interest
- Property taxes
- Water
Car Expense:
Since you will be using your car for personal use, we cannot claim 100% of car expense as Business car expense.
Best advice to pay these expenses via Business bank and visa onlyand at the end, we can allocate 80%-90% as business use of car depending on usage and claim proportionate business expense.
- Fuel and oil
- Interest
- Insurance
- Licence and registration
- Maintenance and repairs
- Leasing (use Chart C below)
- Electricity for zero-emission vehicles
Capital Expense:
If you buy any assets, please send us purchase bill to claim into business. Best advice to pay these expenses via Business bank and visa onlyand Take Bill in the Business Name.
- Car Purchase
- Laptop, Phone Purchase
- Office Furniture
- Office Fridge
- Office Major Repairs and Renovations
Business Expense Made Via Personal Bank, Personal Credit Cards or Cash
Please use below excel sheet to track Business Expense paid Via Personal Bank, Personal Credit Cards or Cash
