How to Complete the Commissioned Employee Expense Prep Form

This form collects information on common expenses incurred by commissioned employees while earning income. Deductions claimed through this form can reduce taxable income, providing valuable tax relief when prepared accurately.

Before starting, ensure the client has a signed T2200 – Declaration of Conditions of Employment form from their employer, as this is required to substantiate these claims.

Listing Commissioned Employee Expenses

Input the total amounts spent during the tax year across each applicable category:

• Advertising: Costs related to promoting products or services (e.g., flyers, online ads).

• Meals and Entertainment: 50% of reasonable business-related meals and entertainment costs.

• Bad Debts: Uncollected amounts from clients or customers, if applicable.

• Mortgage Interest: If part of the home is used for business purposes (e.g., home office).

• Business Taxes, Licenses, and Memberships: Annual dues for professional associations or licensing bodies.

• Office Expenses: General office costs such as postage, small equipment under $500, or courier services.

• Office Stationary and Supplies: Larger or bulk purchases of supplies (e.g., printer ink, office furniture).

• Professional Fees: Fees paid to accountants, legal advisors, or other professionals related to your work.

• Management and Administration Fees: Costs related to third-party administrative services.

• Rent: If renting a space or a portion of your home used to earn commissions.

• Repairs and Maintenance: Expenses to maintain business equipment or workspaces.

• Salaries, Wages, and Benefits: If you employ others to help generate commissions.

• Property Taxes: Business-use portion of property taxes if working from a home office.

• Travel Expenses: Business-related travel including airfare, lodging, taxis, and mileage.

• Utilities: Electricity, heating, water, and internet if used to earn commission income.

• Fuel Costs: Fuel related to business travel outside of commuting (non-reimbursed).

• Insurance: Costs for business-related insurance policies (e.g., liability insurance).

• Other (specify): Include any additional eligible expenses and clearly describe them (e.g., software subscriptions).

Inputting Motor Vehicle Expenses

For clients using a vehicle to earn commissions, report the following:

• Vehicle Details: Include make, model, year, and acquisition date of the vehicle.

• License and Registration Fees: Annual costs for vehicle licensing.

• Maintenance: Repairs, oil changes, and servicing.

• Insurance: Annual premiums for vehicle insurance.

• Leasing Costs: If the vehicle is leased, include total lease payments.

• Fuel: Total fuel costs for business travel.

• Other: Include tolls, parking, or other vehicle-related expenses.

Business Use Calculation:

• Kilometers driven for business: Only include business-related driving (e.g., client meetings).

• Total Kilometers driven in the year: Entire year’s driving, including personal use.

• Percentage for business use: Divide business kilometres by total kilometres to determine the allowable deduction percentage for vehicle-related expenses.