- Bad debts
- Business taxes, fees, licenses, dues and memberships
- Delivery, freight and express
- Fuel costs (except for motor vehicles)
- Insurance (fire, theft and liability)
- Maintenance and repairs
- Management and administration fees
- Meals and entertainment (50%)
- Motor vehicle expenses
- Office expenses
- Legal, accounting and other professional fees
- Property taxes
- Rent; salaries, wages and benefits
- Telephone and utilities
- "Other" expenses
In addition, a business can indirectly deduct capital expenses for such things as equipment and motor vehicles that are used exclusively for the business. Vehicles used part-time for the business are in another category.
The capital cost allowance formula uses a sliding scale of depreciation costs that includes several classes and allowable yearly deduction rates. A computer, for example, is a class 10 piece of equipment that can be deducted at a rate of 30% a year (but just 15% in the first year).
Speaking of motor vehicles, operating expenses for these represent another category, which includes fuel and oil, interest, insurance, license and registration, maintenance and repairs, leasing costs and other expenses. These may be deducted proportionate to use by the business.
For home businesses, you can deduct some home expenses for heat, electricity, insurance, maintenance, mortgage interest (or rent), property taxes and "other expenses." Again, this must be proportionate to the portion of the home used for the business.