Small Business Tax Deduction Cheat Sheet

Small businesses in Canada can claim various expenses as deductions on their taxes to reduce their taxable income. It's essential to keep detailed records of these expenses, including receipts and invoices. 

Here's a list of common expenses that Canadian small businesses can claim on their taxes:

• Supplies: You can claim expenses for office supplies, stationery, disposable supplies, and small tools and equipment necessary for your business operations.
• Professional Fees: Deduct fees paid to accountants, lawyers, and consultants for business-related services.
• Advertising and Promotion: Expenses related to advertising, marketing, and promotional activities, such as advertising campaigns, website development, and social media marketing costs.
• Insurance: Premiums paid for business insurance, including liability, property, and vehicle insurance.
• Vehicle Expenses: If you use a vehicle for business purposes, you can claim a portion of expenses like fuel, maintenance, and insurance. Be sure to keep a mileage log. (If you don’t keep a mileage log understand there’s a higher chance of being denied your expenses, but at bare minimum keep all your receipts)

• Part time businesses generally claim 30% of their vehicle expenses
• Full time businesses generally claim 60% of their vehicle expenses 

• Business Meals and Entertainment: A portion of expenses related to business meals and entertaining clients or partners can be deductible. 

• If it’s while you’re working and by yourself, you can claim 50% - 
• If you take a client out it’s 100%

• Travel Expenses: Deduct expenses for business-related travel, including airfare, accommodations, and meals while away from your business location. 

• If you’re traveling more than 30km away from your home - it’s travel

• Interest on Business Loans: You can claim interest paid on loans used for your business.
• Depreciation: Capital cost allowance (CCA) can be claimed for the depreciation of assets such as equipment, machinery, and vehicles used for business.
• Home Office Expenses: If you operate your business from home, you can claim a portion of your home-related expenses like utilities, rent, and property taxes, based on the percentage of space used for business. 

• Typically you can claim 20% if you do not run any physical services out of your home
• If you run a physical service out of your home you can claim up to 60% - Salon, Nail Salon, Photography Studio, Professional Services, Medical Services etc 

• Internet and Phone: Expenses for internet and phone services used for business purposes.

• Internet is typically 20-40% 
• A Personal Phone is typically 40-60% depending on use 
• If you have a dedicated business phone you can claim 100%

• License and Permit Fees: Fees paid for business licenses and permits are generally deductible.
• Bank Charges: Deduct bank fees and charges related to your business accounts.
• Maintenance and Repairs: Expenses for maintaining and repairing business assets and property can be claimed.
• Dues and Subscriptions: Membership dues for professional organizations or industry associations are typically deductible.
• Education and Training: Expenses for training and courses related to your business can be claimed. Some personal development expenses can be claimed such as a business coach. 
• Charitable Contributions: Donations made by your business to registered charities may be deductible.
• Salaries and Wages: This includes employee salaries, wages, and any benefits or bonuses paid to employees.
• Subcontractor Payments: Expenses paid to external contractors are typically deductible. 
• Facility Rent: Deduct the cost of renting an external office or workspace, including lease payments for commercial property. This is a space that is not your home. 

• Facility Utilities: Expenses for electricity, gas, water, internet and telephone services are deductible.

It's crucial to keep accurate records and consult with a tax professional to ensure that you're following Canadian tax laws and regulations, as they can change over time. Additionally, some expenses may have specific eligibility criteria, so it's essential to verify with the Canada Revenue Agency (CRA) or a tax expert.

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