![]() If you pay subcontractors, their wages are also deductible. Either way, the salaries you pay to employees are deductible. You may have thought their salaries would be included as operating expenses. Your employees are essential to keeping your business running. Employee Salaries and Benefits Are Deductible Too You’ll then be able to claim a portion of these household expenses, equal to your workspace. You’ll calculate the square footage of your workspace as a percentage of your home’s total area. You will only be able to claim a part of these expenses though. It may even include things like the cost of cleaning supplies for the house. If you run your business from home, you can claim many of the same expenses you’d pay if you rented or owned office space. Home Business Expenses Are Also Deductible So long as it’s essential to keeping your business running smoothly, it’s likely an operating expense. Many items are deductible at 100 per cent, although you may be able to claim only portions of some. This is why operating expenses are often the largest item you can deduct. In a mechanic’s business, buying oil and oil filters might be operating expenses. In an office, this includes office supplies. If you have to buy supplies from other companies, these count as operating expenses. It also includes expenses associated with your plant or office, such as: This includes things like software you need to offer service to clients or your phone bill. If you pay for it to deliver service to your customers, it could be an operating expense. The list of operating expenses is lengthy. The first tax deduction business owners learn about is their operating expenses. Operating Expenses Are Often the Largest of the Small Business Tax Deductions They could get your business some much-needed tax relief. As tax season approaches, be sure to keep these ten deductions on your radar. Many business owners miss deductions though. ![]() You’re likely aware of at least a few small business tax deductions offered by the Canada Revenue Agency. Some of these are tax deductions, designed to make it easier to keep your doors open. Since small business is the backbone of the economy, it only makes sense that there are plenty of incentives for business owners. ![]() In fact, they account for 99.8 per cent of all businesses in the country. Small and mid-sized firms make up the lion’s share of business in Canada. ![]()
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January 2023
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