Dale Jackson

Personal Finance Columnist, Payback Time

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ANALYSIS: Turns out the Canada Revenue Agency has a heart after all.

While most Canadians had to file their 2015 tax returns last May, self-employed Canadians have until June 15 – next Wednesday – to submit them.

It’s probably because the CRA recognizes the challenges that small business owners face in staying organized while also running their firms.

Those challenges have rewards in the form of tax deductions. But according to tax expert Tim Cestnick at Waterstreet Group, you need to be sure you are self-employed in the eyes of the CRA.

The line between self-employed and employed is fine. As an example, the CRA would normally consider you “self-employed” if you have several clients. If you only have one client, on the other hand, the CRA could consider that client to be your employer – making you ineligible to make self-employed deductions.   

If you are self-employed and use a portion of your house for work, you can deduct that portion from several costs including: mortgage interest, property taxes, home insurance, utilities, repairs and maintenance and landscaping.

There are also tax deductions relating to your business outside your home such as advertising and promotion, memberships, subscriptions, licences, office supplies, salaries and wages, and telephone.

Fifty per cent of meals and entertainment related to your business can also be deducted.

The portion of vehicle expenses used for business such as gas and oil, insurance, registration, repairs, loan interest, lease costs, automobile club dues, car washes can also be deducted.