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kylantek
April 11, 2022
Question

Are coffee,tea and snack deducted as business expenses

  • April 11, 2022
  • 1 reply
  • 0 views

Hello,

 

I have corporate for a month. My company is just me and my wife as employees.

I am wondering if tea, coffee and snack can be deducted as business expense as we always have 2 cups of coffee and some snacks during our daily work. I just think if CRA may consider this expense is for personal instead of business as we registered our apartment as office.

So can anyone help me clarify this? I am quite newbie about this but I'm ready to learn step by step.

if they can be deducted, should I put them under "Meal and Entertainment" category?

Thanks in advance.

1 reply

F
FaithL
April 11, 2022

Thanks for joining us here in the QuicBooks Community, kylantek!

We're glad to help you through the learning process so you can get the most out of QuickBooks, and I'm happy to help clarify how these business expenses can be entered in QBO.

According to the CRA, you can deduct the cost of items the business used indirectly to provide goods and services. You can also educt expenses for telephone and utilities, such as gas, oil, electricity, water, and cable, if you incurred the expenses to earn income. The expenses for utilities that are related to business use of workspace in your home have to be claimed as business-use-of-home expenses. You can dive into more detailed guidelines that align with your particular work situation by visiting the CRA Website right here: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses.html.

As for recording and categorizing your business expenses in QuickBooks Online, there are several expense accounts to choose from the QuickBooks creates for you automatically based on the business type you selected when you started the account! You also have the option to create your own expense account within your Chart of Accounts using these steps: Add additional accounts to your Chart of Accounts in QBO.

This should help get you on track for recording your expenses in QBO, and if you have any other questions, we're always here to help!

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