![]() ![]() ![]() Read more: How to keep audit-proof mileage logs that lower your taxes Home-Based Insurance You are required by the Canada Revenue Agency to keep an accurate logbook to verify when the car is being used for business and pleasure. And, as a result, one of the most scrutinized by the Canada Revenue Agency. ![]() Vehicle expenses tend to be one of the most abused ways of claiming deductions. This can be advantageous come tax time because you can write-off the business portion of your vehicle use expenses. Most Canadian small business owners use their personal vehicles for business purposes. Read more: Top Small Business Tax Deductions Automobile Expenses Depreciable assets wear out over time, so you can only claim a portion of the original cost as a tax deduction each year. When it comes to home office write-offs, the key is understanding the difference between office expenses (pens, stamps) and depreciable assets (printers, filing cabinets, computers). Furniture, computers, office equipment, mobile devices, etc. ![]() If you work from home, you can write-off: How much you can write-off is determined by the percentage of your home office space compared to the total size of your home. If you work from home, whether it’s in a big office or on the kitchen counter, you can claim a large number of different expenses. Home office expenses are the most common tax-write offs for small businesses in Canada. 5 Tax Write-Offs for Small Business in Canada Home-Office Expenses There are a lot of different write-offs that small business owners can take advantage of to reduce their taxable income some are common, and some are uncommon.īelow is a list of write-offs tips small business owners in Canada can use to reduce their tax bill and, in some cases, put them in a lower tax bracket. In some cases, tax-write offs can lower your federal tax bracket, reducing the amount of income tax you need to pay.ĭepending on which province you live in, your small business may be eligible for other tax write-offs. A tax write-off is simply another way of saying “tax deduction.” With a tax write-off, you can deduct a large number of expenses approved by the Canada Revenue Agency, all of which help to significantly reduce your taxable business income.įor example, if you make $100,000 a year and have $15,000 in write-offs, you are only going to be taxed on $85,000 in income. ![]()
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