New incorp for software contractors

[Samoinp]

Hello,

Had a question about setting up an incorporation to invoice clients for software services. It would be a single person Ontario corp working at client site for 5 days a week. Can i claim gas, food, parking as an expense to reduce total taxable income?

 

[k.h.p.]

You will probably want to talk to an accountant about this.

Basic rules - if the corporation claims expenses that are yours to reduce the corporation's taxable income, then you must claim the same expenses as income. Someone has to be paying the tax. It doesn't go away.

Example: if the corporation pays for $400 of food and parking for you in May, then you have to add $400 in taxable benefits to your T4.

 

[yaun10]

Yes you can. As long as those expenses are actually expenses of your business activities.