Tax Tip Thursday

For the next 4 weeks we are going to have quizzes!

Are you up for it? Nothing hard.

We are calling this Can You Deduct it?”

1. “Can you deduct your dog as a security system for your business?”

Answer:

Sometimes — partially.
If the dog is genuinely used to protect a:
• business property,
• farm,
• warehouse,
• or commercial premises,
some expenses MAY be deductible.
But CRA will likely expect:
• a real business purpose,
• reasonable costs,
• and evidence the dog is actually functioning as security.
Your family shih tzu guarding the couch probably doesn’t qualify.
A trained guard dog at a scrapyard?
Very different story.

2. “If you answer work emails while on vacation in Mexico… can you deduct the trip?”

Answer:

Usually no.
Just checking emails while on vacation does NOT suddenly turn it into a business trip.
CRA looks at the PRIMARY purpose of the travel.
If the main reason was vacation, margaritas are still not deductible.
But if there’s a legitimate business conference, client meetings, or substantial work activity, PART of the trip may qualify.

3. “Can a fishing boat be a business expense in Canada?”

Answer:

Absolutely — IF it’s legitimately used to earn income.
Examples:
• commercial fishing,
• charter fishing,
• tourism,
• guiding,
• marine construction.
But buying a bass boat and calling yourself “CEO of relaxation” usually won’t work.
CRA LOVES auditing luxury assets disguised as business expenses.
If you legitimately take clients out, some of the expenses of the boat might be deductible depending on volume of usage and size of deduction claimed.

4. “If you name your boat after your business… is it deductible?”

Answer:

No.
Putting your company logo on your boat doesn’t magically create a tax deduction.
CRA cares about USE — not the name.
A yacht named “Tax Saver Inc.” is still a yacht.

5. “Can you write off golf in Canada?”

Answer:

Mostly no.
Golf club memberships are generally NOT deductible in Canada.
Meals at a golf course may be partially deductible under normal meal rules if business-related.
But the actual golf itself?
Usually denied.
This one disappoints business owners every single year.

Not sure about your business deductions? Come ask us!  Make An Appointment today!

Disclaimer:

This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal or tax advice nor can it or should it be relied upon. All tax situations are specific to each individual. If you have specific tax questions you should book an appointment for a 1 on 1 consultation.