Tax Tip Thursday

Part 2 of your Can you deduct it quizzes!

Let’s see how you do.

6. “If your kid appears in your company advertising, can you pay them?”

Answer:
Yes — IF it’s reasonable and legitimate.
If your child:
• models for ads,
• appears in social media content,
• stuffs envelopes,
• cleans the office,
• helps the business,
you can potentially pay them.
BUT:
• the work must be real,
• the pay must be reasonable,
• and you should keep records.
Paying your 4-year-old $80,000 for “consulting” may attract attention.
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7. “Can influencers deduct makeup and haircuts?”

Answer:
Sometimes — but carefully.
Personal grooming is usually NOT deductible.
However, if appearance is directly tied to earning income — like actors, performers, broadcasters, or influencers creating monetized content — some expenses MAY qualify.
But CRA often challenges these claims because they overlap heavily with personal use.
So this is a gray area with risk.
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8. “If you work from home, can you deduct toilet paper?”

Answer:
Technically… sometimes indirectly.
Home office expenses can include a percentage of household operating costs:
• utilities,
• cleaning supplies,
• internet,
• maintenance.
Toilet paper itself isn’t usually specifically claimed separately.
But if it’s part of general cleaning or household expenses within a legitimate home office calculation, indirectly… kind of yes.
This answer always makes people laugh.
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9. “Can you claim your hot tub as a medical expense?”

Answer:
Surprisingly — sometimes yes.
If prescribed by a medical practitioner for a qualifying medical condition AND certain CRA requirements are met, portions may qualify.
But:
• it must primarily serve a medical purpose,
• not general relaxation,
• and supporting documentation is critical.
CRA will likely scrutinize this heavily.
Especially if it overlooks a tiki bar.
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10. “If your cottage has Wi-Fi and you take Zoom calls there… is it now a home office?”

Answer:
Probably not.
Occasional work activity at a cottage usually does NOT make it a deductible home office.
CRA generally expects:
• regular employment use,
• a designated workspace,
• and income-earning purpose.
Working one Friday afternoon from the dock does not create a “corporate retreat deduction.”
Nice try though.

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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.