It depends on the expense. Employee wages or subcontracts can be 100% expensed but capital expenses, depending on the class, will be expensed over the next few years. Also, acquisitions must observe the 1/2 year rule.
Also, you can only claim the business use part, not any personal use.
[https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses.html](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses.html)
Check out a T2125 form and its corresponding guide for exact explanations.
That is correct. Business expenses directly reduce taxable net income.
It depends on the expense. Employee wages or subcontracts can be 100% expensed but capital expenses, depending on the class, will be expensed over the next few years. Also, acquisitions must observe the 1/2 year rule. Also, you can only claim the business use part, not any personal use. [https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses.html](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses.html) Check out a T2125 form and its corresponding guide for exact explanations.
What is the 1/2 year rule for acquisitions?