When you first launch your small business, you should know right off the bat that every dollar counts. In the first year or two, there will be frequent losses and budget will be tight. But that’s okay. You would need all the tax breaks you can get. You can actually save cash and reduce your business’ taxable income and taxes payable by deducting certain business expenses.
According to the CRA, your business must have a reasonable expectation of profit in order to deduct expenses. You cannot continuously deduct business expenses if your business isn’t becoming profitable.
Here are 7 common deductible small business expenses:
Ultimately, deducting small business expenses will help you save a lot of money. Keep in mind that this is just general information. If you decide to go through it, consult with your accountant first.
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