Social Club & other write offs

I have a client that is self employed as a well being coach. She has a home office. she also wants to write off Soho House Membership fees of $1500. In the USA they don’t allow this deduction but i can’t find anything wrt CRA -
She also wants to write off business use of home % of new furniture - couch tv, etc in living room $8k because she said it is in the session/photos.
Also $20k for mentoring coach in US - this is education expense. Her sales were only $20k
She must have used her CRB for this
Any feedback would be great

“Any feedback would be great”

You have anything you can sell her? :grinning:

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Honestly I would say get a ruling on those expenses. I know start up expenses are allowed providing they relate to earning profit. Business membership is allowed, social club maybe not.The education should be processed through a T2202. I would be cautious on the furniture but you can CCA the % of usage. Good luck!

She said it is US tuition so there won’t be a T2202. For her business, I would use the social club, if that is what it is. I have been filing one like this for years now - I have warned her - about the possible consequences but…

The key is that expenses must be incurred to earn the business income. They also need to be reasonable. You can’t claim if the main purpose of the social club is dine and wine, recreation, or sports.

She could very well do coaching in that facility - rather than at home in a possibly cluttered office.

yes i should upsell :slight_smile:

thank you for all your replies. i did express caution over expenses and ensure i have a good audit/paper trail of communication.

apparently she uses for networking

Coaching may be a professional development cost.

The rules for BUOH are pretty straight forward - an area that is used exclusively for business which is your principal place of business or where you regularly meet clients.

Actually, she could get a foreign T2202 - I can’t remember the actual number of the form (T111A seems to ring a bell?) that the school has to complete.

On institutions on the List of Designated Educational Institution can issue the tuition slips.