Business owners are times tired of paying taxes they feel are too steep for their income. It can be disheartening to invest all the time and effort yet end up with such little profit. But, did you know that you must have missed out on some deduction?
Probably yes, most Canadian entrepreneurs are known to skip some small deductions. Deductions, which all added up and amount to a significant saving. So, today in the blog, we’re here to spread awareness. Help business owners with tax filings and also discuss little known deductions suggested by our expert accountants in Thornhill.
For home-based businesses
If you’re operating your business out of your home, it is possible to write off a portion of the rent, utilities, and other home expenses. But is only possible, if you use your home it is the principal place for your business. It should have an exclusive place for meetings with clients and customers.
Research & Development
This can seem an uphill task, but as per expert accountants in Thornhill, if you have an RnD program, you may be eligible for deductions. Showing it in the filings can be a little tricky, but try to include all or any RnD programs that your business may include.
Food & Entertainment
Yes, the CRA limits deductions to 50% of the amounts paid by businesses on food and entertainment, but you may be eligible for a lot more. Most businesses overlook a lesser-known fact. CPA allows full deduction of expenses of 6 company events a year, provided the entire staff is invited.
For small business powers, the ability to write off business promotional material as deductions can be extremely helpful. As a matter of fact, you can do this under Canadian tax laws regardless of the type and medium of promotion.
Yes, you can even include business travel expenses and enjoy a deduction. Keeping an account of the expenses can be a bit tough but with proper planning and documentation, you can easily include them while filing.
Apart from the above-mentioned points, you can also write off donations you made as deductions. It is important to be well-informed about the lesser-known rules as they can yield great benefits in the long run. I hope these tips help you accountants in Thornhill to prepare a more fool-proof filing and yield higher deductions.