Small businesses are the lifeblood of the Canadian economy, accounting for more than 90% of all businesses in the country. And while small businesses face many challenges – from razor-thin margins to cash flow shortages – they also enjoy a number of tax advantages that larger businesses don't.
One such advantage is the ability to write-off certain expenses against income. This can include items such as office supplies, advertising, and travel costs. In fact, small businesses can write off a wide variety of expenses, making it easier to keep their books in the black.
There are a few things to keep in mind when claiming small business write-offs. The first thing to note is that small businesses can only claim expenses that are related to their business activities – you can't just claim a deduction for any old thing you bought. Second, you need to have receipts or other documentation to support your claims. Finally, you can only claim deductions that exceed 2% of your company's net income. This limit is called the "small business deduction limit," and it changes from year to year.
There are a number of different expenses small businesses can write-off on their taxes, and it’s important to understand which deductions are available to you. Here is a comprehensive list of the most common small business write-offs in Canada:
Visit the Government of Canada’s Business Expenses page to view a full list of what could be considered business write-offs.
If you're unsure about which small business write-offs are available to you, or if you would like help calculating how much you could save in taxes by claiming these deductions, consult with an accountant or tax specialist.
As a small business owner in Canada, make sure you take advantage of these tax breaks. It can help you keep more of your hard-earned money in your pocket!
Advice and research for Canadian small businesses from our expert team