Q: I am self-employed and I need to buy appropriate business attire to meet my clients. Can I deduct these wardrobe purchases as an expense?

A: “You cannot deduct the clothing that you will wear. Any personal expenses are not deductible,” says the CRA’s Trépanier.

Q: I got a parking ticket after a meeting with a client ran late. Can I deduct it?

A: “Penalties such as fines and parking tickets cannot be claimed,” she says.

Q: I have one cellphone that I use for work and home. How do I claim that as an expense?

A: You have to determine the portion that is used for business and you deduct only that, Trépanier says.

Q: I have a cleaning service and I buy the cleaning supplies for my business. What can I deduct?

A: You can claim the cost of your cleaning staff and your cleaning supplies for your business. If you operate your business at home, you can make these deductions if they are related to your work space, according to Trépanier.

Q: I have the Internet at work. Can I claim it as an expense?

A: It can be claimed 100% at your principal place of business. However, if it’s a home office, only a portion of the Internet can be claimed for its use in your work space. You have to evaluate the time that you use the Internet for your home business.

Q: I own a small business and I have one car that I use for both work and my family. What is my motor vehicle deduction?

A: Record the total number of kilometres driven from Jan. 1 to Dec. 31 and calculate the number of kilometres you have driven for business reasons, recording the date, destination and reason for each trip. For example, if you have driven a total of 10,000 kilometres in a year and you have calculated that 1,000 kilometres were for business, you can claim a 10% deduction for the use of your car, Trépanier says.

What does CRA consider office expenses?

The CRA allows you to claim certain expenses related to your home office. These expenses include: rent electricity heating home internet water maintenance minor repairs. Office supplies such as pens, pencils, paper clips, stationery, and stamps can also be claimed as office expenses.

Q: I file my business tax return electronically. Do I need to keep my paper receipts?

A: Keep your receipts at least for six years because they will be needed if there is an audit.

Q: I just bought business equipment and laptops for my staff. How do I deduct them?

A: Some business owners overlook expenses that should be capital costs, Trépanier says. Deduct equipment over a number of years. For example, if you buy laptops for employees deduct this equipment over its lifetime. This yearly deduction is called a capital cost allowance (CCA) .

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Portfolio company

Ambyint

Details

Region

Prairies and West

Industry sector

Resource extraction technologies

Investment year

2023

Fund

Industrial Innovation Venture Fund

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Lead

Joseph Regan

Senior Managing Partner

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About the company

Ambyint is a leading provider of AI-powered optimization software for the energy industry. The platform helps oil and gas producers increase production, reduce operating costs, and minimize their environmental footprint. With a commitment to innovation and sustainability, Ambyint is dedicated to shaping the future of energy production.

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Ambyint

Joseph Regan

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