The Right Way to Look at Expenses


Own Your Vehicle Personally if You Drive About 8,000 km or More Per Year 

CRA Vehicle Allowance Rate
2020 5,000 km $0.59 and then $0.53
2019 5,000 km $0.58 and then $0.52
2018 5,000 km $0.55 and then $0.49
2017 5,000 km $0.54 and then $0.48
2016 5,000 km $0.54 and then $0.48

Company Owned or Leased Vehicle if You Drive About 8,000 km or More Per Year as Long as Over 50% is Driven for Business

Company Owned
Maximum Capital Cost Allowance (CCA) aka depreciation is on $30,000 regardless of purchase price
Depreciation Year One 15%
Depreciation thereafter 30%

Company Leased 
Lease Maximum
$800/month = $9,600/Year


Meals and Entertainment

Sales Luncheons & shareholders meetings
Claim 100% so that you calculate the sales tax, but because you ate too, the CRA wants the accountant to back out 50%. Your company still pays the whole amount and there is no taxable benefit to you.

Gift certificates
Approximately 30% of the time you can buy a gift certificate and claim it as Advertising and promotion so that you can write it off at 100%, instead of oonly 50%.

Business Luncheon that actually garners business:
Attach business card & purchase order to receipt and claim 100% by claiming it as Advrtising and Promotion.

Golf: Pay green fees not annual membership

NHL Hockey or CFL Football: Buy tickets to individual games not season tickets

Customer appreciation parties
Do you have any receipts for large restaurant parties or Costco receipts declared as home barbeque parties? Put them under Advertising and Promotion to a total of 6 customer appreciation parties, plus 1 customer appreciation Christmas party.

Business Use of Home Office

 Must be your only office and used regularly
Your office “space” divided by your total home space…
Example: 200 sq ft / 2,000 sq ft = 10%

Take maximum of 20%

Example Deductions include:
1. 20% of Rent or mortgage interest
2. 20% of Property insurance
3. 20% of Property tax
4. 20% of Operating costs: Heat, light, water, etc.
5. 20% of Cleaning supplies
6. 20% of Maintenance & repairs semi-related to space
a. 20% Furnace, air conditioning and roof repairs
7. 100% of Maintenance & repairs to actual space
a. 100% of Painting the room
b. 100% of Repairs due to equipment installations

Medical Expenses

We have a $200 Health Spending Account that allows you to write off all medical expense at 100%.


Travel Expenses

You can go on 1 Annual General Meeting per year with your shareholders anywhere in the world. Therefore, make your spouse and children non-voting shareholders, each with a different class of share.

You can also attend 2 industry-related conventions anywhere in the world.


Children as Employees

AB: 12 years old
BC: 12 years old
SK: 14 years old
MB: 13 years old
ON: 14 years old
QC: 14 years old
Eastern Canada: Any age with any work that is not harmful to the child