Input Tax Credits (ITC) Query for Taxes

[hold.your.own.media]

Hello all,

I was just wanting some layman clarification on what we can claim as ITCs. The GVMT has listed the below as options:

-business-use-of-home expenses

-business start-up costs

-delivery and freight charges

-fuel costs

-legal, accounting, and other professional fees

-maintenance and repairs

-meals and entertainment (allowable part only)

-motor vehicle expenses

-office expenses

-rent

-telephone and utilities

-travel

Can we also claim the GST paid on items purchased specifically to resell? I used to do predominantly personal sales until more recently. Was hoping this could also be factored in when filing my GST return. If not, is there anything we can do to claim those amounts? Much appreciated, thanks!

[flipistics]

This comes with the obligatory disclaimer that I'm not a tax professional and you should assume everything I say is wrong and verify it for yourself or seek out someone who is a professional.

In general (assuming you have a GST or HST number), tax you pay that's related to your business should be claimable. Note that if you aren't in an HST province, your province may have something to allow you to seperately claim the PST/RST/QST etc as well. If it's something that is dual use (like a home office or a car), then the tax related to the percentage used for business should be claimable. For expenses related to a car I believe you have to have mileage records using a method approved by the CRA (I'm not 100% sure on that).

Make sure you have and keep proper tax receipts for everything over the threshold ($30?).

[recped]

The short version of @flipistics accurate post........

ANY GST/HST you pay related to anything to do with your business is an ITC. For most businesses the number one source of ITC's is the amounts paid on your acquired inventory.

For an  eBay seller the next two are GST/HST paid on eBay fees and shipping.

Basically if the expense is deductable then any GST/HST paid is an ITC.

[hold.your.own.media]

Perfect. Thanks all!