![]() ![]() However, the CRA imposes strict limits on these expenses, so it’s important to keep detailed records and only claim expenses that are directly related to your business. Meals and Entertainment: Meals and entertainment expenses incurred while conducting business, such as business lunches or networking events, may be deductible.Additionally, expenses related to your business telephone and internet services may also be deductible. Office Expenses: Different from Office Supplies, Office Expenses is the category where you can claim things like pens, pencils, paper clips, stamps, paper etc as a business expense.Office Supplies: This category is for the expenses you need to run your business, for example: medication if you are a vet, cleaning supplies if you are a plumber, and household supplies if you run a childcare facility.Advertising and Promotion: Any expenses related to advertising and promoting your business, such as brochures, business cards, trade show fees, social media advertising, and the development of your website, can be deducted as a business expense.To calculate this deduction, you’ll need to keep detailed records of your business-related travel and determine the percentage of vehicle expenses that are directly related to your business. Vehicle Expenses: If you use your vehicle for business purposes, you may be able to deduct a portion of the vehicle’s operating expenses, such as gas, maintenance, and insurance.Only temporarily working home and want to keep it simple? You could use the flat-rate deductions of $2 per day that was put in place in 2021 for those at home due to Covid19. To calculate this deduction, you’ll need to determine the portion of your home used exclusively for business purposes and calculate the corresponding expenses. Business Use of Home: If you operate your small business from a room in your home, you may be eligible to claim a portion of your home-related expenses, such as rent, utilities, and insurance, as business expenses.It’s always best to consult with a tax expert or accountant to ensure you’re taking advantage of all the deductions you’re eligible for. Keep in mind that the following deductions are general guidelines and may not apply to every small business. So you know the taxes you need to collect and pay out but do you know the deductions you’re eligible to help you save money? In this article, we’ll outline some of the most common Canadian Revenue Agency (CRA) approved tax deductions for small businesses. ![]()
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