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Top Tax Deductions for Canadian Businesses


Tax Basics.

 Certainly, here are some common tax deductions that Canadian businesses often utilize:

1. Business Expenses:

  • Office Supplies: Stationery, pens, paper, etc.
  • Rent: Costs associated with renting business premises.
  • Utilities: Deductible portion of utilities used for business.

2. Salaries and Benefits:

  • Employee Wages: Including bonuses and overtime.
  • Employee Benefits: Health and dental plans, pensions, and other benefits.

3. Home Office Expenses:

  • Home Office Deduction: Portion of home expenses (mortgage interest, property taxes, utilities) corresponding to the home office space.

4. Vehicle Expenses:

  • Business Use of Vehicle: Deductible portion of vehicle expenses for business use.

5. Capital Cost Allowance (CCA):

  • Depreciation: Deduct a portion of the cost of depreciable assets over time.

6. Professional Fees:

  • Accounting Fees: Fees paid to accountants for tax-related services.
  • Legal Fees: Fees for legal advice related to the business.

7. Advertising and Promotion:

  • Advertising Costs: Expenses related to advertising and marketing.

8. Travel Expenses:

  • Business Travel: Deductible expenses related to business travel, including accommodations and meals.

9. Bad Debts:

  • Uncollectible Debts: Business debts that are deemed uncollectible.

Disclaimer: The information provided in this blog post is for general informational purposes only and should not be considered as professional tax advice. It is recommended to consult a qualified tax professional or visit the official website of the tax authority in your jurisdiction for personalized guidance and the most up-to-date information.

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