If you’re self-employed or run your own small business, tax preparation software like TurboTax is an eligible deduction. While interest on money borrowed to buy a motor vehicle is a deductible expense, you can’t claim the cost of the vehicle itself as this expense can only be written off over time through Capital Cost Allowance (CCA). Other examples include fuel and oil costs, insurance, maintenance and repairs, and leasing costs. In addition to claiming round-trip mileage and parking fees on business-related meetings and excursions, you may be able to claim license and registration fees. Legal, accounting, and bookkeeping fees are all deductible small business expenses. Box rental fees, and delivery services like FedEx and UPS. If what you’re mailing or shipping is business-related, you can deduct the cost of postage, envelopes, P.O. Usually, you can write off 50% of the cost of meals, beverages, and entertainment when you travel on business. For example, if you take your client to lunch or a hockey game, you can deduct 50% of the cost from your business income. ![]() Deduct 50% of the amount that you spend on meals and entertainment. If you hire independent contractors or freelancers for any business-related purpose-such as taking product photos for your online store or writing posts for your company blog-this cost is a tax deduction. Deduct gross salaries and other benefits, such as the Canada Pension Plan (CPP) and Employment Insurance (EI) premiums you pay to employees. For home offices, deductions must be in line with the actual size of the space you’re using for your business. Expenses for heat, electricity, insurance, maintenance, mortgage interest, and property taxes. Telephone, cell phone, cable and internet are all deductible if these expenses are related to business activities. ![]() That means you can deduct 20% of your home office-related expenses on your tax return. For example, if your home is 2,000 square meters and your office is 400 square meters, your office is 20% of your home’s total size. If this sounds like you, it may translate into a deduction. Small business owners often burn the midnight oil and work off-hours from home. You can deduct rent paid for property used in your business, including the rent for the land and building where your office is located. Don’t include desks, chairs, filing cabinets, and calculators because those are capital items. Small items such as pencils, pens, stamps, paper clips, and stationery. For example, grooming supplies used by a hair salon or tools used by a plumbing service. The cost of items that your business uses to provide goods or services. Digital advertising is also tax-deductible, and also the cost of registering your website’s domain name and web hosting.īusiness supplies. These include the cost of ads on Canadian radio and television stations and in Canadian newspapers. Examples include business cards, flyers, signage, branded promotional items, trade shows, designer fees, and printing costs.Īdvertising fees. Materials used to market your business and the cost of developing these materials. For a start-up cost to be eligible for a tax deduction, it must arise during the tax year (or fiscal period) your business started. Start-up costs for your business can include anything your business needs to launch, from equipment, machinery, and supplies to legal and accounting advice. What are the most common tax deductions for small businesses? If you use your car to drive to client meetings, you can deduct the round-trip mileage as a business expense. ![]() Things you use exclusively for your business in the space where your business operates.If you rent office space, the utility costs you incur are a business deduction. ![]() A dog training service needs leashes, collars, and treats. A landscaper uses sod and mulch to provide landscaping services.
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