Home Based Business Tax Deductions You Don’t Want to Miss
February 25, 2018
[et_pb_section bb_built=”1″][et_pb_row][et_pb_column type=”4_4″][et_pb_text _builder_version=”3.0.86″ background_layout=”light”] If you run a home-based business, it is important to understand all the expenses that you can deduct in order to lower your income tax bill in the process. Home-based businesses have numerous tax advantages. The CRA allows such businesses to claim additional tax deductions on various expenses. We will take a look at some of the most common tax deductions for home-based businesses and how this can apply to you.
Vehicle Use ExpensesIf you use your personal vehicle for business, you can claim the cost as a business expense when filing your tax return. This includes the money you use for fuel and oil, licensing and registration, insurance, car maintenance and repairs. If you borrowed money to buy the car, the interest on that loan can also be considered as a tax deduction. Other costs such as leasing costs and accident repairs may also count. Remember that if you use a car for business and personal use, you can only deduct a portion of the automobile expenses.
The building, machinery or equipment that you use to earn a business income while working from home is likely insured. You can deduct all your insurance premiums for these items when filing your taxes. But make sure your insurer is aware that you are running a home business because failure to provide this information could invalidate your policy. To ensure your home-based business is adequately covered, get home based business insurance which you can use as a business deduction when filing taxes.