Any money you spend to earn income from your business is a “write-off” or expense that you can deduct against the revenue earned in the business. There are two exceptions to this general rule: capital assets are expensed, “written off”, over time; personal expenditures are not business expenses and cannot be “written off” by the company. Expenditures on personal items like a vehicle or home office can be expensed based on the share of business use of the item. The personal share cannot be “written off”.

What Is a Write-Off?

What counts as a business expense, and the two big exceptions.

Kramer’s Advice to Seinfeld (YouTube)

Seriously, what is a write-off?

Any money you spend to earn income from your business is a “write-off” or expense that you can deduct against the revenue earned in the business.

There are two exceptions to this general rule:

Capital assets are expensed, “written off”, over time.
Personal expenditures are not business expenses and cannot be “written off” by the company. Expenditures on personal items like a vehicle or home office can be expensed based on the share of business use of the item. The personal share cannot be “written off”.

Write-offs & vehicles

Vehicle Allowances

How the CRA’s reasonable per-kilometre allowance works when you reimburse employees.

Read the answer →

Corporate vs Personal Vehicle Ownership

Buying a vehicle personally or through your business, for proprietors and corporations.

Read the answer →

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