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Jul 16, 2020 2:13 AM UTC
Question

I run an electrical contracting business and have a quick inquiry on business expenses. Material that you buy FOR the project such as WIRE, BOXES, PANELS, are these considered business expenses that are tax deductible?

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1 reply

LeithG
Jul 16, 2020 1:21 PM UTC

Hi k-rowe1487

 

These would be recorded as expenses on your books, reducing your overall profit in the business, thereby reducing the tax owing at the end of the year.  Here's a pretty simple list of the kinds of things you're allowed to expense while self-employed:

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses.html

 

Hope this helps!