{"id":72227,"date":"2022-11-14T13:32:02","date_gmt":"2022-11-14T21:32:02","guid":{"rendered":"https:\/\/www.kvkcpa.com\/blogs\/post\/IT_Consultant_Specific_Business_Expenses"},"modified":"2022-11-14T13:32:02","modified_gmt":"2022-11-14T21:32:02","slug":"it-consultant-specific-expenses","status":"publish","type":"post","link":"https:\/\/kvpcpa.ca\/index.php\/2022\/11\/14\/it-consultant-specific-expenses\/","title":{"rendered":"IT \/ Consultant Specific Expenses"},"content":{"rendered":"<div class=\"zpcontent-container blogpost-container \">\n<div data-element-id=\"elm_x7Mwt8RCRBavDkxrwcLmkg\" data-element-type=\"section\" device-show-desktop=\"\" device-show-tablet=\"\" device-show-mobile=\"\" class=\"zpsection \" data-background-type=\"\">\n<style type=\"text\/css\"><\/style>\n<div class=\"zpcontainer-fluid zpcontainer\">\n<div data-element-id=\"elm_QW4LyQXmRs6OK6rL2n2BeA\" data-element-type=\"row\" device-show-desktop=\"\" device-show-tablet=\"\" device-show-mobile=\"\" class=\"zprow zprow-container zpalign-items- zpjustify-content- \" data-column-ratio=\"12,12\" data-tablet-column-ratio=\"\" data-mobile-column-ratio=\"\" data-equal-column=\"\">\n<style type=\"text\/css\"> [data-element-id=\"elm_QW4LyQXmRs6OK6rL2n2BeA\"].zprow{ border-radius:1px; } <\/style>\n<div data-element-id=\"elm_aixEFwZHQbmiuoCCrfYLgg\" data-element-type=\"column\" device-show-desktop=\"\" device-show-tablet=\"\" device-show-mobile=\"\" data-background-type=\"none\" class=\"zpelem-col zpcol-12 zpcol-md-12 zpcol-sm-12 zpalign-self- \">\n<style type=\"text\/css\"> [data-element-id=\"elm_aixEFwZHQbmiuoCCrfYLgg\"].zpelem-col{ border-radius:1px; } <\/style>\n<div data-element-id=\"elm_M_ZNO8PmRiW-MxyTQvkHGg\" data-element-type=\"heading\" device-show-desktop=\"\" device-show-tablet=\"\" device-show-mobile=\"\" class=\"zpelement zpelem-heading \">\n<style> [data-element-id=\"elm_M_ZNO8PmRiW-MxyTQvkHGg\"].zpelem-heading { border-radius:1px; } <\/style>\n<h2\n class=\"zpheading zpheading-align-center \" data-editor=\"true\"><\/p>\n<div style=\"color:inherit;\">\n<h1>What expense can IT \/ Consultant claim to save taxes?<\/h1>\n<\/div>\n<\/h2>\n<\/div>\n<div data-element-id=\"elm_K1W9TJJARdOOH4tYszJ4Rg\" data-element-type=\"text\" device-show-desktop=\"\" device-show-tablet=\"\" device-show-mobile=\"\" class=\"zpelement zpelem-text \">\n<style> [data-element-id=\"elm_K1W9TJJARdOOH4tYszJ4Rg\"].zpelem-text { border-radius:1px; } <\/style>\n<div class=\"zptext zptext-align-left \" data-editor=\"true\">\n<p>You can claim following Business Expenses:<\/p>\n<div>\n<ul>\n<li style=\"color:inherit;\"><span style=\"font-weight:bold;\">Subcontracting Expense &#8211; <\/span>Subcontracting expense paid to other companies, up work, outsourcing fees etc.<\/li>\n<li style=\"color:inherit;\"><span style=\"font-weight:bold;\">Software Expense &#8211;&nbsp;<span style=\"font-weight:normal;\">Microsoft office, accounting software, google workspace etc.<\/span><\/span><\/li>\n<li><span style=\"font-weight:bold;\">Training Expense &#8211;&nbsp;<\/span>Any IT course taken online, classroom for development&nbsp;of skills.<\/li>\n<li><span style=\"font-weight:bold;\">Referral Expense &#8211;&nbsp;<\/span>Any commission given to friends, family, other companies to obtain leads, customer or business.<\/li>\n<li><span style=\"color:inherit;font-weight:bold;\">Equipment Purchase &#8211;&nbsp;<\/span><span style=\"color:inherit;\">Computer, mobile phone purchase, server purchase, furniture and <\/span>fixatures<span style=\"color:inherit;\">&nbsp;etc.&nbsp;<\/span><\/li>\n<li style=\"color:inherit;\"><span style=\"font-weight:bold;\">Advertising and Promotion&nbsp;<\/span>&#8211; Online Advertisement, Banners, posters, Gifts given to customers, Christmas gifts etc.<\/li>\n<li style=\"color:inherit;\"><span style=\"color:inherit;\"><span style=\"font-weight:bold;\">Business start-up costs <\/span>&#8211; Incorporation cost, license fee, Master Business License fees, Certification etc.<\/span><\/li>\n<li style=\"color:inherit;\"><span style=\"font-weight:bold;\">Licenses and dues <\/span>&#8211; Professional Certification, License fees etc.<\/li>\n<li style=\"color:inherit;\"><span style=\"font-weight:bold;\">Interest and bank charges<\/span><\/li>\n<li style=\"color:inherit;\"><span style=\"font-weight:bold;\">Insurance <\/span>&#8211; commercial insurance premiums for machinery, buildings and equipment<\/li>\n<li style=\"color:inherit;\"><span style=\"font-weight:bold;\">Maintenance and repairs<\/span> &#8211; Expenses incurred for home office, office repairs, car repairs etc.<\/li>\n<li style=\"color:inherit;\"><span style=\"color:inherit;\"><span style=\"font-weight:bold;\">Office expenses <\/span>&#8211; stationery such as pencils, pens, office tools<\/span><\/li>\n<li style=\"color:inherit;\"><span style=\"font-weight:bold;\">Salaries, wages and benefits <\/span>(including employer&#8217;s contributions<span style=\"color:inherit;\">.<\/span><\/li>\n<li style=\"color:inherit;\"><span style=\"color:inherit;\"><span style=\"font-weight:bold;\">Rent <\/span>&#8211; Office Rent. (If working from home, we can take % of used based on sq feet and claim proportionate expense<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<div data-element-id=\"elm_Zb-zNqTIPYbJDZ8Z3HcBOQ\" data-element-type=\"text\" device-show-desktop=\"true\" device-show-tablet=\"true\" device-show-mobile=\"true\" class=\"zpelement zpelem-text \">\n<style> [data-element-id=\"elm_Zb-zNqTIPYbJDZ8Z3HcBOQ\"].zpelem-text { border-radius:1px; } <\/style>\n<div class=\"zptext zptext-align-left \" data-editor=\"true\">\n<p><span style=\"font-weight:bold;text-decoration-line:underline;font-size:20px;background-color:rgb(244, 244, 78);\">Home office Expense:<\/span><\/p>\n<p><span><span style=\"font-size:16px;\">Since you will be using your home space for personal use, we cannot claim 100% of home expense as home office expense.<\/span><\/span><\/p>\n<p><span><span style=\"font-size:16px;\">Best advice to <span style=\"font-weight:bold;\"><span style=\"background-color:rgb(244, 244, 78);\">pay these expenses via personal bank and visa only<\/span><\/span>and at the end,<span style=\"font-weight:bold;\"> we can allocate 20%-50% as business<\/span> use of home and claim proportionate business expense.<\/span><\/span><\/p>\n<div style=\"color:inherit;\">\n<div>\n<ul>\n<li>Heat&nbsp;<\/li>\n<li>Electricity&nbsp;<\/li>\n<li>Insurance&nbsp;<\/li>\n<li>Maintenance&nbsp;<\/li>\n<li>Mortgage interest&nbsp;<\/li>\n<li>Property taxes&nbsp;<\/li>\n<li><span style=\"color:inherit;\">Water<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div data-element-id=\"elm_gUa0IG6XvsARdc9QL7Zegw\" data-element-type=\"text\" device-show-desktop=\"true\" device-show-tablet=\"true\" device-show-mobile=\"true\" class=\"zpelement zpelem-text \">\n<style> [data-element-id=\"elm_gUa0IG6XvsARdc9QL7Zegw\"].zpelem-text { border-radius:1px; } <\/style>\n<div class=\"zptext zptext-align-left \" data-editor=\"true\">\n<p><span style=\"font-weight:bold;text-decoration-line:underline;font-size:20px;background-color:rgb(244, 244, 78);\">Car Expense:<\/span><\/p>\n<p><span><span style=\"font-size:16px;\">Since you will be using your car for personal use, we cannot claim 100% of car expense as Business car expense.<\/span><\/span><\/p>\n<p><span><span style=\"font-size:16px;\">Best advice to <span style=\"font-weight:bold;\"><span style=\"background-color:rgb(244, 244, 78);\">pay these expenses via Business bank and visa only<\/span><\/span>and at the end,<span style=\"font-weight:bold;\"> we can allocate 80%-90% as business<\/span> use of car depending on usage and claim proportionate business expense.<\/span><\/span><\/p>\n<div style=\"color:inherit;\">\n<div style=\"color:inherit;\">\n<div>\n<ul>\n<li>Fuel and oil&nbsp;<\/li>\n<li>Interest&nbsp;<\/li>\n<li>Insurance&nbsp;<\/li>\n<li>Licence and registration&nbsp;<\/li>\n<li>Maintenance and repairs&nbsp;<\/li>\n<li>Leasing (use Chart C below)&nbsp;<\/li>\n<li>Electricity for zero-emission vehicles<\/li>\n<\/ul>\n<\/div>\n<p><\/p>\n<div><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div data-element-id=\"elm_3LOInzVQ6VyE1JN6uelCZw\" data-element-type=\"text\" device-show-desktop=\"true\" device-show-tablet=\"true\" device-show-mobile=\"true\" class=\"zpelement zpelem-text \">\n<style> [data-element-id=\"elm_3LOInzVQ6VyE1JN6uelCZw\"].zpelem-text { border-radius:1px; } <\/style>\n<div class=\"zptext zptext-align-left \" data-editor=\"true\">\n<p><span style=\"font-weight:bold;text-decoration-line:underline;font-size:20px;background-color:rgb(244, 244, 78);\">Capital Expense:<\/span><\/p>\n<p>If you buy any assets, please send us purchase bill to claim into business. Best advice to <span style=\"font-weight:bold;\"><span style=\"background-color:rgb(244, 244, 78);\">pay these expenses via Business bank and visa only<\/span><\/span>and <span style=\"background-color:rgb(244, 244, 78);\"><span style=\"font-weight:bold;\">Take Bill in the Business Name<\/span><\/span>.<\/p>\n<div style=\"color:inherit;\">\n<div style=\"color:inherit;\">\n<div>\n<ul>\n<li>Car Purchase<\/li>\n<li>Laptop, Phone Purchase<\/li>\n<li>Office Furniture<\/li>\n<li>Office Fridge<\/li>\n<li>Office Major Repairs and Renovations<\/li>\n<\/ul>\n<\/div>\n<p><\/p>\n<div><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div data-element-id=\"elm_O_Lcnm5S84DvqxoeJk9itA\" data-element-type=\"section\" device-show-desktop=\"true\" device-show-tablet=\"\" device-show-mobile=\"\" class=\"zpsection zpdefault-section zpdefault-section-bg \" data-background-type=\"color\" style=\"background-color:rgba(1, 58, 81, 0.19);background-image:unset;\">\n<style type=\"text\/css\"> [data-element-id=\"elm_O_Lcnm5S84DvqxoeJk9itA\"].zpsection{ border-radius:1px; } <\/style>\n<div class=\"zpcontainer-fluid zpcontainer\">\n<div data-element-id=\"elm_CJXp771Oc9DGOW3iImIpKg\" data-element-type=\"row\" device-show-desktop=\"\" device-show-tablet=\"\" device-show-mobile=\"\" class=\"zprow zprow-container zpalign-items-flex-start zpjustify-content-flex-start \" data-column-ratio=\"12,12\" data-tablet-column-ratio=\"\" data-mobile-column-ratio=\"\" data-equal-column=\"\">\n<style type=\"text\/css\"><\/style>\n<div data-element-id=\"elm_AejFVn1MHkSQ7M0bAuqSSQ\" data-element-type=\"column\" device-show-desktop=\"\" device-show-tablet=\"\" device-show-mobile=\"\" data-background-type=\"none\" class=\"zpelem-col zpcol-12 zpcol-md-12 zpcol-sm-12 zpalign-self- zpdefault-section zpdefault-section-bg \">\n<style type=\"text\/css\"><\/style>\n<div data-element-id=\"elm__GBbGKeAGAguPedMyp-MKg\" data-element-type=\"heading\" device-show-desktop=\"\" device-show-tablet=\"\" device-show-mobile=\"\" class=\"zpelement zpelem-heading \">\n<style><\/style>\n<h2\n class=\"zpheading zpheading-style-none zpheading-align-center \" data-editor=\"true\"><\/p>\n<div style=\"color:inherit;\">\n<div>Business Expense Made Via Personal Bank, Personal Credit Cards or Cash<\/div>\n<\/div>\n<\/h2>\n<\/div>\n<div data-element-id=\"elm_CHQ9NyQpW_bJi9twPCFtQA\" data-element-type=\"text\" device-show-desktop=\"\" device-show-tablet=\"\" device-show-mobile=\"\" class=\"zpelement zpelem-text \">\n<style><\/style>\n<div class=\"zptext zptext-align-center \" data-editor=\"true\">\n<p>Please use below excel sheet to track&nbsp;<span style=\"color:inherit;\">Business Expense paid Via Personal Bank, Personal Credit Cards or Cash<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div data-element-id=\"elm_YvwLPS0vWDxkWDqYrL7akQ\" data-element-type=\"row\" device-show-desktop=\"true\" device-show-tablet=\"true\" device-show-mobile=\"true\" class=\"zprow zprow-container zpalign-items-flex-start zpjustify-content-flex-start zpdefault-section zpdefault-section-bg \" data-column-ratio=\"12,12\" data-tablet-column-ratio=\"\" data-mobile-column-ratio=\"\" data-equal-column=\"\">\n<style type=\"text\/css\"> [data-element-id=\"elm_YvwLPS0vWDxkWDqYrL7akQ\"].zprow{ border-radius:1px; } <\/style>\n<div data-element-id=\"elm_72uPkMp5Z8Yv_EspZRn1Sg\" data-element-type=\"column\" device-show-desktop=\"true\" device-show-tablet=\"true\" device-show-mobile=\"true\" data-background-type=\"none\" class=\"zpelem-col zpcol-12 zpcol-md-12 zpcol-sm-12 zpalign-self- zpdefault-section zpdefault-section-bg \">\n<style type=\"text\/css\"> [data-element-id=\"elm_72uPkMp5Z8Yv_EspZRn1Sg\"].zpelem-col{ border-radius:1px; } <\/style>\n<div data-element-id=\"elm_C-VO7bazeFBuZ-cDqUN_ig\" data-element-type=\"button\" device-show-desktop=\"true\" device-show-tablet=\"true\" device-show-mobile=\"true\" class=\"zpelement zpelem-button \">\n<style> [data-element-id=\"elm_C-VO7bazeFBuZ-cDqUN_ig\"].zpelem-button{ border-radius:1px; } <\/style>\n<div class=\"zpbutton-container zpbutton-align-center \" data-outline=\"false\">\n<style type=\"text\/css\"><\/style>\n<p><a data-full-width=\"false\" data-title=\"\" class=\"zpbutton-wrapper zpbutton zpbutton-type-primary zpbutton-size-md zpbutton-style-none \" href=\"\/Business%20Expenses.xlsx\" download><span class=\"zpbutton-content\">Download Expense Sheet<\/span><\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>What expense can IT \/ Consultant claim to save taxes? You can claim following Business Expenses: Subcontracting Expense &#8211; Subcontracting expense paid to other companies, up work, outsourcing fees etc. Software Expense &#8211;&nbsp;Microsoft office, accounting software, google workspace etc. Training Expense &#8211;&nbsp;Any IT course taken online, classroom for development&nbsp;of skills. Referral Expense &#8211;&nbsp;Any commission given [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-72227","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/kvpcpa.ca\/index.php\/wp-json\/wp\/v2\/posts\/72227","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/kvpcpa.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kvpcpa.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kvpcpa.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/kvpcpa.ca\/index.php\/wp-json\/wp\/v2\/comments?post=72227"}],"version-history":[{"count":0,"href":"https:\/\/kvpcpa.ca\/index.php\/wp-json\/wp\/v2\/posts\/72227\/revisions"}],"wp:attachment":[{"href":"https:\/\/kvpcpa.ca\/index.php\/wp-json\/wp\/v2\/media?parent=72227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kvpcpa.ca\/index.php\/wp-json\/wp\/v2\/categories?post=72227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kvpcpa.ca\/index.php\/wp-json\/wp\/v2\/tags?post=72227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}