💰 Small Business Tax Deductions in Canada: What You Can Claim
1️⃣ Introduction: Why Small Business Deductions Matter
- Many businesses overpay on taxes because they don’t claim all eligible deductions.
- The CRA allows certain business expenses to be deducted from taxable income.
2️⃣ Common Small Business Tax Deductions
✅ Small Business Tax Deductions in Canada 🇨🇦
1️⃣ 🏠 Home Office Expenses
✅ Deduct a portion of your rent, utilities, internet, and property taxes based on business use.
2️⃣ 🚗 Vehicle Expenses
✅ Claim fuel, insurance, maintenance, lease payments, and depreciation for business use. Keep a mileage log!
3️⃣ 💰 Salaries & Wages
✅ Wages paid to employees + CPP, EI, and payroll taxes are deductible.
4️⃣ 📢 Advertising & Marketing
✅ Deduct social media ads, flyers, business cards, and website costs.
5️⃣ 🖨️ Office Supplies & Equipment
✅ Printers, computers, desks, chairs, software – all deductible!
6️⃣ 📊 Professional Fees
✅ Accounting, bookkeeping, legal, and consulting fees are tax-deductible.
7️⃣ 🏦 Interest on Business Loans
✅ Business loan interest is fully deductible.
8️⃣ 🛡️ Business Insurance Premiums
✅ Insurance for liability, property, and business interruption is deductible.
9️⃣ 🍽️ Meals & Entertainment (50% Deductible)
✅ Business meals with clients or meetings in restaurants – claim 50%.
🔟 💵 GST/HST Paid on Business Expenses
✅ Claim Input Tax Credits (ITCs) to recover sales tax on business expenses.
1️⃣1️⃣ 💻 Technology & Software
✅ QuickBooks, cloud storage, and business-related subscriptions are deductible.
1️⃣2️⃣ 🏗️ Depreciation (Capital Cost Allowance – CCA)
✅ Claim large purchases (vehicles, buildings, machinery) over time.
1️⃣3️⃣ ⚖️ Legal & Accounting Fees
✅ The cost of hiring professionals for business matters is deductible.
1️⃣4️⃣ ✈️ Travel Expenses
✅ Flights, hotels, and business-related transportation are claimable.
1️⃣5️⃣ 🚀 Business Start-up Costs
✅ Registering your business, initial marketing, and consulting fees are deductible.
3️⃣ CRA Rules for Business Expense Claims
- Expenses must be necessary and directly related to business operations.
- You must keep receipts and invoices for CRA verification.
4️⃣ How to Maximize Your Deductions
✔️ Keep detailed records (use QuickBooks or an accountant).
✔️ Claim partial expenses for mixed-use assets (e.g., personal vs. business vehicle).
✔️ Consult a tax professional to avoid missed opportunities.
📞 Call to Action:
Want to ensure you’re claiming all eligible tax deductions? Contact Abraham Accounting Inc. today!