Business Income and Expenses

If you are self-employed, keep a record of your income and expenses. Make sure that expenses are reasonable current expenses that you incurred to earn business or professional income. Do not forget to record capital purchases such as computers, furniture, equipment, etc.

Use our templates to summarize your numbers:

T2125 For self-employed businesses View File

T2125 For self-employed doctors View File

Rental Income

If you have investment property or you are renting out a part of your house, keep detailed records of all the rental income you earn and the expenses you incur. You have to support your purchases and operating expenses with: invoices; receipts; contracts; or other supporting documents.
Keep your records separately for each investment property.
If there was an acquisition of new property during the year, please provide purchase documents showing purchase price, associated expenses and mortgage package.
If you sold your investment property in 2016, provide sales agreement, rental income and expenses up to the date of property sale and associated sale expenses.

RENTAL INCOME CHECKLIST View File

 

Automobile Expenses

To deduct automobile expenses you need to keep a record of the total kilometers you drive and the kilometers you drive for business purposes. You will need a logbook of business travel maintained for the entire year. For each trip provide the following:

  • Date
  • Destination
  • The reason for the trip
  • Distance

Record the odometer reading at the beginning and the end of the fiscal period. If there are more than one vehicle, keep a log book for each of them separately.

The types of automobile expenses you can claim:

  • License and registration fees;
  • Fuel cost
  • Auto insurance
  • Interest on money borrowed to buy a vehicle
  • Maintenance and repair
  • Leasing cost

You should keep all receipts to be able to claim expenses. If you purchased or leased a new vehicle during the year, provide a copy of the invoice with other expense receipts.

USE OUR LOG BOOK TEMPLATE TO RECORD YOUR MILEAGE View File