Tax Breaks For Small Business Owners
Let’s face the facts – Canadians have to deal with a very large amount of taxes year after year. However, that doesn’t mean that our tax system is totally ruthless. Some of the best tax write offs for small business owners in Canada can easily save you thousands of dollars per year. Don’t believe it? Add up these deductions, and take a look at the difference you’ll have.
- Car Expenses – Both home-based businesses and office businesses can write off a tax expense in the form of a car expense. The way this works is simple. Catalog your mileage and maintenance, and then write it off at the end of the year. You also can deduct interest that you incur when buying a company car.
- Office Expenses – It’s no joke! All that paper, printer ink, and computer software can add up over a year. As such, the Canadian government allows business owners to write off the expenses that come with running an office. Keep those Staples receipts, folks!
- Business Use Of Home Expenses – New business owners that run their company out of their homes can claim a lot of expenses. Aside from utilities, homeowners can also claim a portion of their mortgage and property taxes as business expense. Some of the other expenses that fall into this category include internet connections, telephones, cleaning supplies (!), and heat.
- Scientific And Research Credits – Business owners that have an element of science or research to their company’s business plan can also claim a nice number of tax write-offs dealing with expenses that come with researching things. Nice!
- Investment Tax Credits – Yes, it’s true. Business owners can actually write off expenses that come with certain types of property that your company acquired. This may be a bit of a hard tax credit to claim, but getting an ITC is definitely a sweet deal.
- Private Health Services Plan – Company owners who do not want their employees to rely on public health services can actually get a write off for a PHSP. Most of the money that you spend to privately insure yourself and your family is covered as well.
- Hiring A Spouse Or A Child – While some may call this established nepotism, others would just call it a smart hire. Hiring your family members can and does allow you to claim yet another deduction. Tax deductions are always nice!
Truth be told, Candian small business owners can find a lot of ways to get tax write-offs. The best tax write offs for small business owners in Canada can and do vary depending on the industry, so when in doubt, it’s often best to just rely on the help of a trusted accountant.