Nice try Funny tax deductions people ask about (and what you can actually claim)

Every bookkeeper has a list. Not of clients — of questions. The ones that start with “okay, hear me out…” and end with a very hopeful look.

We love these questions, honestly. Asking is always better than guessing. So here are the ones that come up again and again, with the honest answer and, where there is one, the version you can claim.

“My dog is basically my office manager.”

She greets every Zoom call and guards the house. Sadly, CRA sees a pet. Food, vet bills and the very cute bandana are personal. What you can claim: almost never anything for a family pet. A true working animal in a business that needs one is a different conversation.

“I answered emails on the beach, so the trip is a business trip.”

Checking your inbox from a lounger doesn’t turn a holiday into business travel. What you can claim: travel where the main purpose is business — a client meeting, a conference, a job site — and only the business part of it.

“The gym membership keeps me sane, and a sane owner is good for business.”

True, and still no. Gym and recreation club dues are specifically not deductible. What you can claim: nothing here, unless fitness is your business and the costs are tools of your trade.

“I bought a new outfit for my photo shoot.”

We hear this one a lot. If you could wear it anywhere else, it’s personal clothing, even if it only ever appears on camera. What you can claim: uniforms and required safety gear. The photographer, the hair and makeup artist you hired for the shoot, and the editing — those are business costs.

“I take clients out on the boat.”

This one’s spelled out: the cost of using a yacht, a lodge, a golf course or a club for entertaining isn’t deductible. What you can claim: a genuine business meal with that client, usually at 50%.

“My kids help, so their allowance is a business expense.”

Closer than you’d think. What you can claim: a reasonable wage for real work they actually do — filing, social media, packing orders — paid properly, through payroll if it’s a wage. An allowance for cleaning their room doesn’t count.

“Netflix is research.”

For a film reviewer, maybe. For most of us, it’s the end of a long day. What you can claim: subscriptions directly related to running your business — your accounting software, design tools, scheduling app, licensed music for your videos.

“I work at the coffee shop, so my latte is office rent.”

Creative. Still no. What you can claim: 50% of a coffee meeting with a client or a collaborator, with a note on the receipt about who and why.

“We renovated the kitchen. I work from home.”

A home office doesn’t make the whole house a business expense. What you can claim: a share of eligible home costs based on your workspace — we explain exactly how in home office expenses in Canada.

Got a weird one? Ask us, we’ve heard it all

• Want someone to keep your books right all year? Book a free 15-minute video call, or email team@kcandcompany.ca with a few details.
• Doing your own books? The Books Check-Up is a flat-fee review that catches what you’ve missed — and what you shouldn’t have claimed.