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May 24, 2019
A lawyer who makes $1.70/hour? Tax court wasn't buying it, either

Employees are extremely limited in their ability to deduct expenses against their income, needing their employer to certify, in writing, that the employee was required to pay such expenses and was not otherwise reimbursed for them. Contrast that to those who are self-employed and can write off myriad expenses, including those related to the business use of a work space in their home.

It’s no wonder, then, that we often hear of employees, gainfully employed full-time at respectable businesses or institutions, who set up a “side-business” as a way to justify writing off otherwise non-deductible personal expenses, such as cellphone bills, high-speed home Internet and a portion of their household utilities. These businesses often fail to ever show a true profit and, more often than not, result in losses, as the individual invariably writes off their “business” expenses against minimal self-employment revenue, resulting in a “loss” from self-employment, which is then deducted against their full-time employment income.

At least, that’s what’s supposed to happen — until you get caught. Take, for example, the Federal Court of Appeal decision released earlier this week involving a Quebec lawyer who ran her own full-time law practice before moving to Ottawa in the fall of 2000, to take a full-time job with the federal government. After the move, the taxpayer maintained her private law practice, albeit on a much-reduced, part-time basis.

Cellphone Tax Treatment Is Referenced Again By Main Stream Press

You’ll see yet another reference to cellphones and the appropriate way to deduct or not deduct in this latest article from Jamie Golombek

Jamie has now referenced on no less than 3 occasions the new landscape with regards to cellphone tax treatment

Ensure tax compliancy and legitimate deductions (personally or corporately) with mobilityView

A lawyer who makes $1.70/hour? Tax court wasn't buying it, either