Sharing Daily Discoveries About Personal Finance And Business Topics

When Your Business Use Is Your Personal As Well For Tax Write Offs

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One thing that I was kind of thinking of recently is that since it is almost the tax deadline here in Canada that organizing all your things to write-off as an expense is often a topic for the self-employed. Now one thing when it comes to larger expenses like say certain rooms in your house or a piece of equipment you are supposed to determine what percentage of that item is for your business operation versus your personal. So something like a cell phone bill may not be as straight forward.

For myself it’s kind of weird as in many ways a lot of my personal life is essentially some of my work as well. I guess a good example is typically speaking imagine playing a video game or writing those things off as a business expense. Sounds ridiculous where if you were the government employee you would probably think the person is nuts and is abusing the system. In reality the person could be doing it for a living such as reviewing the product where they had to buy it to do so.

Even for many people nowadays online they could say write or showcase things as a business where that can even be food. So normally like when it comes to writing off meals for your business you could say it was a meeting and so you write that off. But what if the person’s business was to literally eat and publish review of food everyday as like a blog as an example? I mean technically you are eating it because you have to for personal but at the same time it is for your business for that scenario.

It’s one of those topics that sure makes it interesting when it comes to finance and trying save money on business expenses where the difference between business and personal use are way too integrated due to the circumstance.

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