A Taxing Situation

Now that it’s tax time and many folks are doing, or at least thinking about doing, their income tax, professional photographers might want to refresh their knowledge of allowable business expenses.

This list of business expenses and their brief explanations provide the starting point for completing tax form T2125.

This is only a starting point because “you can deduct any reasonable current expense you paid or will have to pay to earn business income.” The key word is “reasonable”.

The word “reasonable” is not defined in (tax) law but it has been shaped through Canada Revenue Agency rulings and technical interpretations. If your tax situation is even slightly complex, a good accountant can come in handy.