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Every business in Canada is allowed to benefit from some write-offs and deduct expenses from their income. Of course, these expenses must be for maintaining the company and keeping it running. The best part is that the CRA has given a list of expenses that are eligible for tax deductions.

Small business tax deductions can help you maintain your business better. Below we have detailed everything about eligible expenses for tax deductions.

Marketing Bills

Advertising your small business in Canada requires you to invest money in different promotional campaigns. For instance, you may run ads on national radio channels. You may also promote your business on TV or in newspapers in Canada.

The best part is digital advertising methods are also eligible for small business tax deductions. You can subtract the amount from your taxable income to reduce the money you pay in taxes annually.

Home Office

If you’re using your home as your primary business place, you can get a percentage of costs deducted from the taxable income. This is a helpful option for people who set up their start-ups at home. Maintenance costs such as utility bills and energy bills can be deducted.

The primary way to calculate the deduction percentage is by multiplying your home office space size by 100. Then, divide the result by the total property size to get the final percentage. The best thing about this is that it can reduce the cost of setting up your business if you cannot rent an office.

Office Rent

Another thing that counts as a business expense is office rent. You may be renting a property for your team or storing business equipment. The CRA allows you to deduct the rent amount from your taxable income.

However, you must ensure the space is being used for specific business tasks. You can also benefit from small tax deductions for small items such as stationery, stamps, and office cleaning supplies.

Hiring Independent Workers

Hiring independent workers may be necessary for your small business in Canada. For instance, you may hire freelancers to take product photos for your brand’s official shopping site. You may also hire content writers to write articles for the company blog.

All these things come under eligible expenses for small business tax deductions. You can save more money on taxes by deducting the charges from the overall taxable income.

Phone And Internet

Every business must have a good customer support system to gain clients. You may be offering email options for customers to get in touch with your operatives. Another option you may have is the telephone for customer support.

These things require you to pay high Wi-Fi and phone bills. Team members may also communicate using phones at the office. The best part is that these bills are deductible to help you save money.

Final Words

These are the top five small business tax deductions you can benefit from. Be sure to maintain the requirements set by the CRA for each expense category.