Canuckbusiness

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Are stamps an office expense or supplies?

This is a very common question. And truthfully, you could put them in either category and it would not affect your bottom line.

However, this is CRA’s take on it:

Supplies:

You can deduct the cost of items used indirectly to provide the business’s goods or services, such as drugs and medication used in a veterinary operation, or cleaning supplies used by a plumber.

Office Expenses:

You can deduct the cost of office expenses. These include small items such as:

  • pens
  • pencils
  • paper clips
  • stationery and
  • stamps.

There you have it. Put them in Office Expenses.

In the Supplies category, I would put things like glue for making or repairing products, or pillow cases used by a massage therapist.

 

July 28, 2011 - Posted by | Random Questions | , , , ,

5 Comments »

  1. would hair colour be a supply and expensed when purchased or would it be an inventory item. My girlfriend and I are arguing on this point. I think that $10.00 tubes of colour should just be expensed when bought not measured at year end and guesstimated on how much is in the tube and the be part of the cost of goods sold.

    Comment by Martin Swensrude | February 28, 2012 | Reply

    • Hi Martin,
      For the sake of your relationship I’m going to tell you that you’re both right. While the tubes of hair colouring could be considered part of COGS, if it were my business, I would expense them under Supplies. It is not worth the time and hassle of counting half-spent tubes that only cost $10. If CRA wants you to do that, let them come out and tell you that during an audit. But until then, let common sense be your guide. There are enough demands on a small business owner’s time as it is.

      Comment by jkswift | February 28, 2012 | Reply

  2. Thanks. I talked to friend that says their business expenses anything under 200.00 for convenience sake

    Comment by Martin Swensrude | February 28, 2012 | Reply

  3. I’ve always been putting stamps into “freight and delivery” category along with couriers etc. Is that completely wrong? Thank you

    Comment by Phantasmix | April 29, 2013 | Reply

    • That works fine. Just be consistent.

      Comment by -- | April 29, 2013 | Reply


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