How Much Money Is Leaking Out of Your Trades Business?

Your Trades Tax Deduction Checklist

Every deduction below is one your trades business can legally claim in Canada. Print this. Hand it to your accountant. Or better yet, get a bookkeeper who catches these every month.

• Vehicle expenses: Fuel, insurance, maintenance, lease payments, parking. Track every km driven for work.
• Tools and equipment: Anything under $500 can be fully expensed. Over $500 gets depreciated (CCA Class 8 at 20%).
• Capital cost allowance: Trucks, trailers, heavy equipment. Class 10 vehicles (30%), Class 54 zero-emission (100% first year).
• Home office: Percentage of rent/mortgage interest, utilities, insurance, property tax, internet. Based on square footage used.
• Phone and data: Business-use percentage of your cell plan. If it's 80% work, claim 80%.
• Subcontractor payments: Fully deductible. Keep invoices and make sure they have GST numbers if registered.
• Materials and supplies: Every nail, every board, every fitting. If you bought it for a job, it's deductible.
• Insurance premiums: Liability, commercial vehicle, equipment, workers comp, health spending account.
• Meals and entertainment: 50% deductible when related to business. Keep the receipt and note who you met with.
• Professional development: Courses, certifications, trade school, safety training, conference travel. All deductible.
• Bad debts: Customers who didn't pay? Write it off. You need documentation that you tried to collect.
• Accounting and bookkeeping fees: Yes, the cost of tracking all this is itself deductible.