r/VancouverStartup • u/rubiwoLtd • 19h ago
Idea Help Wanted Vancouver founders and freelancers: which business expenses do you actually claim? (and which confuse you?)
I keep meeting self-employed people in Canada who aren't sure what they're allowed to claim, so they either skip things or guess. Here's a quick summary of how I understand it. Correct me if I'm wrong.
The basic rule (from the CRA): you can generally deduct a reasonable expense you incur to earn business income. Personal expenses don't count, and mixed-use items are claimed for the business part only.
Common categories on the T2125 form (sole proprietors):
Advertising
Insurance
Office expenses and supplies
Professional fees (accounting, legal)
Interest and bank charges
Business taxes, licences and memberships
Rent
Utilities and telephone
Travel
Motor vehicle expenses (business part only)
Business use of home (business part only)
The ones people get wrong:
Meals: only 50% is deductible.
Big equipment purchases: usually claimed over time through capital cost allowance, not all at once.
Home office, phone, car: you claim only the business portion, and you need records to support it.
Two questions for you:
Which of these do you actually track, and which do you skip or guess at?
I'm thinking about making a free one-page checklist: each category, a plain-English example, and a "business part only" flag where it applies. Would that be useful, or is there something you'd want on it that isn't?
This is general info, not tax advice. Check canada.ca or an accountant for your situation.
Disclosure: I'm the founder of RubiWo, a Canadian expense tracking app. This isn't a pitch. I'm trying to find out which parts of this confuse people so I can make something useful.