Financial
Can I write off Salary to Owner in Canada?
CORP ONLY
Explanation
If you are a Sole Proprietor, you CANNOT deduct a salary paid to yourself; your 'salary' is simply the net profit of the business. Corporations, however, can deduct T4 wages paid to owners. Wages paid to a spouse or child are deductible if reasonable and the work is actually performed.
💡 Pro Tip
If you hire a spouse, pay them via cheque or direct deposit (not cash) to create a paper trail proving the transaction happened.