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tspatterson
December 30, 2022
Question

Do I put in business expenses with or without taxes included?

  • December 30, 2022
  • 1 reply
  • 0 views
When entering business expenses (e.g., advertising costs) do I enter the total including the HST or the pretax total?

    1 reply

    G
    GHarpe
    January 3, 2023

    As per the Canada Revenue Agency (CRA) Expenses section of Form T2125: Generally, you can deduct any reasonable current expense you incur to earn business income. The expenses you can deduct include any GST/HST you incur on these expenses, minus the amount of any input tax credit claimed. However, since you cannot deduct personal expenses, enter only the business part of expenses on the form T2125, Statement of Business or Professional Activities.

    If you claimed having paid the GST elsewhere, do not include it in the amount of the expenses.

     

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