What Business Expenses are Tax Deductible?

26 Mar 2020 Accounting Services

Whether you own a small company, operate within a large corporation, or rely on income from freelance work, it is worth knowing what business expenses are tax deductible so that you can keep as much money as possible in your pocket during tax season. At Leskun & Son Accounting, we have been helping businesses throughout the Fraser Valley with their taxes for over 40 years.

Tax Deductible Business Expenses in Canada

Most expenses for businesses are tax deductible, so It is incredibly important to ensure that you keep careful records of all business expenses and separate them from your personal expenses. One of the best ways to do this is to make sure that you have a separate bank account for all business-related funds if you own a small business or do freelance work. Some of the specific business expenses that are tax deductible in Canada include:

Business Supplies

The costs of any supplies needed for your business to operate are tax deductible. This can include tools, cleaning products, office supplies, and much more. Make sure that you keep all receipts of things bought for your business.

Office Expenses

Renting office space can be expensive, but it is tax deductible. If you work out of your home, the amount of floor space dedicated to your work can be deducted as well, so make sure that you keep records of this. You can also deduct part of your home’s expenses for utilities as business expenses, but the amount deducted must be proportionate to the space used.

Travel Costs

Whether you travel locally or abroad, these expenses are tax deductible. This can include transit fees, gas, vehicle costs, airfare, lodging, and even meals while travelling.

Salaries, Wages, and Benefits

If you have employees, the expenses of paying them are all deductible from your business taxes. Any benefits, including EI, pensions, and additional health benefits, are also deductible.

Marketing Expenses

Businesses are able to deduct expenses for advertising and marketing from their taxes. This can include digital marketing, radio and television advertising, and print marketing.

If you would like to find out more about what business expenses are tax deductible, or to get help from one of our professional accountants with any other small business-related tax or accounting issues, please contact Leskun & Son Accounting at 1-877-826-1219 or fill out a contact form on our website.