Common Tax Deductions For Your Business
Posted On: 31/10/23 - 0

Tax Deductions

It is important to be financially responsible in your business. It is vital to the success and growth of your company for years to come. By taking advantage of common tax deductions for your business, you are able to significantly reduce the amount of tax that you owe the governement. What this means, is you are able to keep more of your hard earned money. In this article we will look at the top tax deductions that every small business owner should know.

1. Business Use Of Your Home Tax Deduction

The home office deduction allows business owners to deduct a portion of their home related business expenses. This tax deduction is only for a part of your home that is used exclusively used for business. purposes. This could cover expenses like rent, insurance, utilities and or property taxes. Accurate bookkeeping to support the claims are always necessary, especially in the event of a CRA audit.

2. Expensing The Business Use Of Your Car

If you have a vehical that you use exclusively for business, you can expense the entire amount of operating and owning that same vehicle. However, if you have a vehicle that you use for both personal and business, you can only expense the business use portion.

3. Business Related Meals

Business meals with clients or business travel are tax deductible at 50% of the amount. For more detailed please check with the CRA website, or call our office today.

4. Office Supplies and Equipment Tax Deductions

Your taxable income can be reduced by deducting the cost of office supplies and equipment. This includes cleaning supplies, computors, office stationary, office postage, etc. Remember to keep all supporting receipts to back up the claims.

5. Employee Expenses

There are various costs associated with having employees. Many of them are tax deductible. This would include wages, payroll taxes, bonuses, and benefits, etc.

6. Accounting, Bookkeeping and Other Professional Fees

You can deduct your professional fees that you have paid to outsource advice or services that help you to run your business. This would include fees for preparing your G.S.T. and corporate tax returns.

Tax laws and deductions change, so it is important to align yourself and your business with an accounting professional who specializes in up to date in common tax deductions for your business. Consult with us to ensure that you are minimizing your tax liabilities and putting more money in your pocket.

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