Revenue and Tax Question

Hi, a question about tax and revenue for a 1 inspector operation.

After paying personal/business tax, association dues, insurance, equipment, fuel, marketing and any other on-going business expenses how much is left percentage wise from your gross revenue (bulk part or average)?

Example: 600 inspections per year at $350 = $210 000 how much would you expect the business to clear after paying all expenses except your salary? 50%?

  • Do you do most of your tax yourself?

Just trying to get a bulk part idea.

Thanks in advance,


I always end up less than zero. I have a good accountant.

Thanks Frank

You need to get a Chartered accountant to do your business and Taxes.
Had mine for 30+ years saved me a lot of money and head aches.
ask him if you should be incorporated too.
We did our own books and he went over them.
He was always available to answer all questions

Thanks Roy, your comments are always very helpful.

You should have Capitol expenses that are depreciated as well… Examples are a truck that you bring into the business, miscellaneous tools, computers and office (percentage of house). I agree that $0 income is the best scenario but if you keep it under $14K you will have minimal liability…

As a 1 person business , schedule C on your personal taxes , you will Definitely be audited if you start writing off a ’ business ’ room jn your house or even your car. Stick with advertising , gas , printer ink, equipment purchases etc. as write offs. And Cash is King.

David is Canadian ,Many laws are much different in Canada .

May 2014
Location: Burnaby, B.C.
Posts: 33

Thanks guys. Yes Cash is King.


In that case, take your Acct to a Maple Leaf game and buy him a case of Molson Golden and ask him to treat ya gently at Tax time ;0)
The ‘Loonie’ is still King though

Tickets to seem a leaf game is about $400;00 a beer is I heard $12;00 .
No one I know can afford to go to see a leaf game , Parking about $35;00

That is old school thinking, You should talk to a good accountant :smiley:

What is the theoretical value of your business when you want to sell it?
Just a thought…and, then, we could think about Social Security if the desire is there, etc…

Best to get a good accountant and experts, I think.

If someone buys someone’s else home inspection business, what are they buying? Their phone number and some equipment? As anyone here heard of a home inspector selling their 1 man shop for big bucks?



For truck and gas I claim 61 cents a kilometer. I use google calendar and google maps to record all my inspection trips, receipts for recording trips to the store, so there is a very wide paper trail, eg, an inspection has a contract, revenue ledger entry, a calendar entry, a purchase has a receipt with a store location and a date, google maps - directions gives the mileage for the trip.
Where do I get 61 cents a kilometer? From the Federal government web site, it is what they will pay the CRA auditor to drive to your place if he or she uses their own car :-), which is a lot more generous than just about anyone else reimburses employees for using a personal vehicle, which is supposed to cover all costs, fuel maintenance, depreiciation. Every 1000 clicks = a $610.00 tax deduction.

David, PM me. Yours is off.

I was being flip when I said zero. I take every deduction that I am legally entitled to take. And I disclose every dime I take in. I don’t worry about being audited because I have documentation for every deduction. If I don’t have the documentation, then I don’t take it. About Social Security, if you’re relying on that for your retirement, you have bigger problems. It’s best to seek the advice of a qualified tax expert when making just about any decision that will impact your business financially. Mine is always there to answer my questions and give advice. And just for the price of doing my return every year.

Hi Larry, I’m not a member here yet so I can’t PM and can’t receive them either.

Thanks all,


That’s good information Erik, however I caution do not mix business with personal. I was called on that by Canada Revenue years back and had to prove my mileage claim from job site to job site.

Just saying! Everyone needs to be careful.

On the selling the inspection business question - I have not heard of too many successful business sales for “big bucks” to retire on the home inspection front. Perhaps the best one can do is take on an associate to eventually take over the business and buy you out, or at least do a buy-out over several years. Again it depends on the business.

I know inspectors that have had banner years, but more recently followed by lucky to get 1 inspection a week scenarios. When it’s a sellers market and multiple offers are the norm with virtually no “conditions”, home inspections are removed. Remember real estate markets can fluctuate dramatically, even with the best of scenarios.

For me it is a 40/60 split basically. 40% to the company bills and 60% for me off paper of course. On paper I get about 30% and the company keeps 70%. It’s all in how your accountant presents the numbers really.