7 Tax Deductions Small Business Owners in Canada Always Miss

1. Home Office Expenses

If you use part of your home for business, you can deduct a portion of your rent or mortgage interest, utilities, property tax, internet, and home insurance. Calculate the percentage of your home used for business and apply it to these expenses.

2. Vehicle Expenses

If you use your personal vehicle for business, track your kilometres. You can deduct gas, insurance, maintenance, parking, and lease payments proportional to your business use. Keep a mileage log — the CRA requires it.

3. Professional Development

Courses, conferences, certifications, books, and subscriptions related to your business are fully deductible. This includes online courses and webinars.

4. Business Meals and Entertainment

You can deduct 50% of meals and entertainment expenses when they are directly related to earning business income. Keep receipts and note who you met and the business purpose.

5. Phone and Internet

If you use your personal phone and internet for business, you can deduct the business-use portion. A reasonable split is typically 50-75% for self-employed individuals who work from home.

6. Health and Dental Premiums

If you pay for your own health and dental insurance, these premiums may be deductible as a business expense or as a medical expense on your personal return.

7. Capital Cost Allowance (CCA)

Major purchases like computers, furniture, and equipment are not fully deductible in the year of purchase. Instead, you claim CCA — a percentage each year. Many business owners forget to claim this ongoing deduction.

The Bottom Line

These deductions can add up to thousands of dollars in savings. The key is keeping organized records throughout the year, not just at tax time. At True Tax Services, we help small business owners maximize every deduction. Book a consultation to see what you might be missing.