If you are owed money from a client but are unable to collect it within a year, you may be able to claim it. If the journalistic content is less than 80% in nature, only 50% of the costs can be written-off. This means advertising cannot take up a majority of the space. To write-off 100% of the costs, at least 80% of the material in the magazine or newspaper must be journalistic in nature. Magazines and Newspapers: Both mediums are fully deductible, but only under some strict conditions.Television and Radio Advertising: Television and radio advertising is also 100% deductible for Canadian stations.This includes the website’s domain name registration and web hosting costs. Online Advertising: Online advertising is 100% deductible.Advertising Costsĭepending on the medium, you can write-off a portion or all of your media advertising costs. Under certain circumstances, you can write-off 100% of business expenses like meals or entertainment. Just make sure to keep all receipts.įor expenses that are both personal and business in nature, you can only write-off the portion of the costs that relate to the business. If you take a client out for dinner and to a baseball game, you can deduct 50% of the cost. In addition to office supplies, which are 100% deductible, business expenses can also include meals and entertainment, but are 50% deductible. Meals and EntertainmentĪs a small business owner, you can write-off most expenses that are used to help the business generate income. Get home-based insurance and use it as a small-business write-off. In some cases, your home insurance can be nullified if the insurer doesn’t know you’re operating a home-based business. Why should you spend the extra money to get commercial insurance for your home-based business? If you don’t have home-based insurance and something happens, you may not be covered. Home-based business insurance is pretty much commercial in nature, but it’s separate from home insurance. Your home-based business needs to have commercial insurance. This includes your home-based business.īut there’s a catch. You can deduct all regular commercial insurance premiums you incur on any buildings, machinery, and equipment that you use for your business. 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 when preparing taxes to reduce their taxable income some are common, and some are uncommon.īelow is a list of write-offs and 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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