You can deduct expenses for telephone and utilities, such as gas, oil, electricity, water, and cable, if you incurred the expenses to earn income.

Do not deduct the basic monthly rate of your home telephone. However, you can deduct any long distance telephone calls you made on your home telephone for your business. If you have a separate telephone for business calls only, you can deduct its basic monthly rate.

You can also deduct the percentage of air-time expenses for a cellphone you use to earn your business income.

The expenses for utilities that are related to business use of workspace in your home have to be claimed as business-use-of-home expenses.

Forms and publications

• Guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income
• Form T2125, Statement of Business or Professional Activities