Running a business is hard enough – don’t let taxes take a bigger hit than they have to. Knowing the small business tax write-offs in Canada can help you save money and keep more cash in your business. Here are key deductions you don’t want to miss:
Input Tax Credits (ITCs)
Business owners can recover the GST/HST paid on business-related expenses, but make sure to not mistakenly claim the sales tax again as an expense on your income tax return.
Fees and service charges
Bank fees, payment processing fees, and platform service charges related to business transactions are all deductible.
Business meals and entertainment
Most business meals and entertainment expenses are 50% deductible, provided they are directly related to business discussions.
Bad debt
If a customer’s unpaid invoice was previously reported as income and is deemed uncollectible, it could be written off.
Interest on mortgages and business loans
Interest on loans and mortgages used for business purposes is deductible, but only the interest portion applies.
To learn more about these deductions and how they work, check out HERE.