Can someone please explain to me what “writing things off” actually means? Like, if I were to buy a new computer for $1500, would I be able to “write that off” as a business expense? I keep a spreadsheet of all of my business expenses- from thread to materials to a few gasoline receipts, but I’m not really sure what “writing it off” means and how much of my normal expenses would fall under some kind of tax break.
Any business savvy owners care to fill me in? I’m new to all of this! Thanks!
1 | Danielle
November 17th, 2008 at 5:18 pm
You may find a bit more information on the subject at http://www.cra-arc.gc.ca/tx/bsnss/tpcs/slprtnr/bsnssxpnss/menu-eng.html.
2 | Jen
November 17th, 2008 at 6:34 pm
Are you actually opening a business? With a business number and collecting taxes and all that? Unless you are actually doing that, you can’t write anything off. If you are, however, you can write off certain things and certain amounts -called “depreciating assets”. So, you could conceivably list a portion of your rent, and a computer etc as a business expense. These are tallied up against your income and that is how they calculate how much tax your business needs to pay the govt. (That’s really really simplified, but that’s the basics of it)
3 | Jen
November 17th, 2008 at 6:38 pm
oh, and if you are officially opening a business, find a good accountant. Its worth its weight in gold to do so, as a good accountant can find you all sorts of loopholes. You can also write off a portion of the cost of the accountant as a business expense!
4 | typealice
November 17th, 2008 at 6:51 pm
Yes, officially registering G Slings and all that stuff. 
I’ve been thinking about hiring someone- and I will definitely be paying someone else to do my taxes this year.
5 | typealice
November 17th, 2008 at 6:52 pm
Oh, and you don’t have to collect taxes until you make a certain amount of $/year
6 | Danielle
November 17th, 2008 at 7:30 pm
All you need to begin a small business is a GST number, which you can register for online. An accountant will be a good advisor to you though and they’ll likely recommend that you incorporate your company after you’ve crossed a certain (I don’t recall what it is) income threshold.
Here’s some more info for you:
http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/rgstrng/menu-eng.html
7 | Amanda
November 18th, 2008 at 3:31 am
Everything you do that is business related can go towards your taxes. Up to 50%. Since you are a graphic design you can claim any new computer purchases, as well as your internet. That meal we had the other day, I could have claimed which is why I didnt mind paying for it, I can claim it as an industry meeting. 1/2 of your rent if you work out of your house, 1/2 of your gas if you deliver. Most people only claim 1/3 though instead of 1/2 it really depends on how much you spend to begin with
8 | typealice
November 18th, 2008 at 3:32 am
Am I able to get half the full expense back, or just get the taxes back? I don’t claim my web work- just sewing stuff.
9 | Amanda
November 18th, 2008 at 4:20 am
You dont get it back perse. you just have to pay out less when tax time comes around.
10 | Amanda
November 18th, 2008 at 4:21 am
Claiming that percent is claiming it as taxes, and its VERY rare that anyone spends enough to get money back on it
11 | corrie
November 18th, 2008 at 6:59 am
look at the write offs like this, any income you make from G slings hasn’t had any tax taken off, like if it were a paycheque from an employer. so even though you don’t have to collect sales tax under 30k, you still have to remit income tax on any profit made at the end of the year. so your expenses will go against your income and you hope they balance out each other enough that you wont owe any extra tax.
keep all you reciepts, get an accountant. doubtful he will let you write off half of your household expenses though like someone said, they are getting sticky about that here, it would more likely be 20 to 30%. also, any large purchase is amortized over several years. so if you spend 50$ on material and thread, that counts as an expense fully, but if you spend 1500 $ on a computer only a percentage of that expense counts each year.
email me if you want gillian
12 | Danielle 2.0
November 19th, 2008 at 11:48 am
Something I thought you might find… interesting.
http://www.usatoday.com/tech/products/2008-11-18-motrin-ads-twitter_N.htm
13 | typealice
November 19th, 2008 at 11:55 am
Danielle 2.0: Yeah, I saw that when it first came out and while it was still on the website. My comment is somewhere in there on the YouTube video. I say they should make another ad about toting around those retarded bucket seats, and that slings/wraps/whatever aren’t painful unless they’re worn improperly.
My sustainable accessories company Pip Robins keeps me busy in the evenings.
