Small Business Tax Deductions in Canada You Shouldn’t Miss

Many small business owners overpay taxes simply because they don’t know what they can deduct.

Understanding business deductions can help you reduce your taxable income and keep more of your hard-earned money. This blog explains what business deductions are, common deductions you shouldn’t miss, and how Wado Tax supports small businesses.

What Is a Business Deduction?

A business deduction is any expense incurred to earn business income. If an expense is reasonable and directly related to your business, it may be deductible under Canada Revenue Agency (CRA) rules. Keeping accurate records and receipts is essential.

Common Small Business Deductions

• Rent: Office or shop rent is generally deductible.
• Home Office: A portion of utilities and housing expenses may be claimed.
• Internet and Phone: Business-related usage only.
• Advertising: Website hosting, online ads, and marketing materials.
• Vehicle Expenses: Fuel, insurance, repairs, and parking for business use.

Home Office Deduction Explained

You may qualify if:

• You work from home
• You regularly use part of your home for business

You can claim a percentage of your household expenses based on how much space your business uses in your home.

Common Small Business Mistakes

• Mixing personal and business expenses
• Poor bookkeeping
• Filing late

How Wado Tax Supports Small Businesses

We:

• Organize records
• Maximize deductions legally
• File CRA-ready returns