Massage Therapy: Tax Deductible In New Brunswick?

Massage therapy is accepted as a tax-deductible medical expense in some Canadian provinces, including New Brunswick. However, it's important to note that medical expenses are not deductible in full. The first 3% of your net income is used to calculate the actual claim amount. For example, if your net income is $30,000, you cannot deduct the first $900 of your medical expenses. If your total medical expenses are $950, only $50 will be deducted.

Massage therapy equipment

Tables and Chairs

The foundation of any massage therapy practice is a comfortable and sturdy table. Portable massage tables are lightweight and easy to transport, making them ideal for therapists who make house calls or travel between locations. Stationary massage tables offer a more permanent solution for those with a fixed workspace. Electric lift tables provide an added element of convenience by allowing height adjustments. Massage chairs offer a space-saving alternative to tables, perfect for smaller spaces or events. They can be portable or stationary, with the option of electric lift mechanisms for added flexibility.

Lubricants

Massage lubricants, such as oils, lotions, and creams, are essential for reducing friction and providing a smooth, gliding action during massages. Natural nut oils, unscented or scented lotions, and CBD-infused products are popular choices. Essential oils are often added to create a specific sensory experience or aromatherapy benefits.

Accessories

A range of accessories can enhance the massage experience for both the therapist and the client. Face cradles, headrests, and armrests provide comfort and support, while bolsters and pillows can be positioned to ensure proper body alignment. Disposable face pillow covers, sheets, and towels maintain hygiene, with options like flannel or microfiber for added luxury. Hot stone cabinets, towel warmers, and electric table warmers further elevate the experience, promoting relaxation and muscle relief.

Technology

Technology plays an increasingly important role in massage therapy. Digital booking systems, online scheduling, and payment processing software streamline administrative tasks. Additionally, marketing materials, websites, and widgets can be utilised to promote the business and facilitate online bookings. Music subscriptions, with ad-free relaxing music, create the right ambiance for clients during their sessions.

Massage lubricants

Massage oils are the most common type of lubricant, and there are many different types available. Coconut oil is a popular choice, as it is hypoallergenic, unscented, and moisturising. It also has a long glide time, which is useful for longer treatments. Coconut oil is also a good carrier oil for aromatherapy massages, as it blends well with essential oils. Grapeseed oil is another good carrier oil, as it has little to no scent, and is rich in vitamins and minerals. Jojoba oil is also popular, as it is antibacterial, anti-inflammatory, and has anti-aging properties. It is also a good choice for those with sensitive skin, as it is very similar to the natural oils found in human skin. Sweet almond oil is another favourite among massage therapists, as it has superior workability and a long glide time. It also has anti-inflammatory properties, making it a good choice for those with skin irritation.

Other types of massage lubricants include lotions, creams, and gels. Lotions are a mixture of oil and water, and are a good choice for those who want the benefits of oil without the greasy feeling. Creams are a mixture of oil and water with an emulsifier, and are thicker and more moisturising than lotions. Gels are made from oil and water with a thickening agent, and are a good choice for those who want a strong grip during the massage.

When choosing a massage lubricant, it is important to consider how it will be used. For light to medium pressure massages, a product with good glide is important. Coconut oil and vitamin E are good choices for this. For deeper massages, something less slippery is needed to avoid injury. Jojoba oil is a good choice for this, as it is a bit tacky. It is also important to consider any skin sensitivities and allergies. Coconut oil is a good choice for those with sensitive skin, as it is hypoallergenic and moisturising. It is also important to spot-test massage oils before use, to ensure that there is no adverse reaction.

Laundry and cleaning supplies

As a massage therapist, you can deduct the cost of laundry and cleaning supplies used in your practice as a business expense. This includes the cost of purchasing cleaning products for your office or clinic, such as handwashing, laundering linens, sanitizing surfaces, and cleaning the floor.

If you pay for a laundry service to clean your linens, you can also write off this expense on your taxes. Similarly, if you purchase equipment such as a washer and dryer for your clinic, these expenses are also tax-deductible.

It is important to note that to claim these deductions, you must have receipts for these transactions and keep good records of your expenses. Consult with an accountant or tax advisor to ensure that you are claiming all eligible deductions and maintaining proper documentation.

Utilities

If you own or rent a building or office for your massage business, you can write off your utilities bills. Electric, gas, and water are common utility deductions for massage therapy businesses.

If you run your massage practice out of a dedicated home office that is used exclusively for your business, you can likely claim a portion of your home expenses, such as utilities, as business deductions.

Travel, entertainment, gifts and car expenses

Travel, Entertainment, Gifts, and Car Expenses

The IRS requires additional information for claiming these kinds of deductions on Schedule C. Here is some information on how to go about claiming these deductions.

Travel

The IRS allows you to deduct travel costs, even if you’re not away overnight, if your duties require you to be away from the general area of your tax home (not your residence) substantially longer than an ordinary day’s work, and you need to sleep or rest to meet the demands of your work while away from home.

Keep a datebook or calendar throughout the year and include information that will help with your tax records. This can help you be sure you claim all the expenses to which you’re entitled for business travel, as small trips can add up over a year. You may also need this information to support what you claim when it comes to business travel and related expenses.

Entertainment

Meals are deductible if they are business-related and are not considered lavish or extravagant by the IRS. You can deduct meals based on the actual cost of the meal, using your receipt as documentation, or by using the IRS per diem rate for the city and time of year. Only 50% of the meal expense can be deducted. (Some food purchases are 100% deductible, such as food you buy for an open house at your practice, and snacks and beverages you offer your clients.)

Gifts

Deductions are limited to no more than $25 per person, per calendar year. Any expense more than $25 cannot be deducted unless considered incidental (such as packaging and mailing costs).

Car

You can deduct the cost of operating and maintaining your car when traveling on business, including actual expenses or standard mileage rate, tolls and parking. If you rent a car while away from home on business, only the business-related portion can be deducted.

Frequently asked questions