5 Overlooked Business Tax Deductions

Running a small business can be particularly stressful during tax season. On top of tracking sales, managing your employees, and keeping your clients happy, you have to sort through a mountain of paper, numbers, and forms. With so much on your plate, there’s a chance you can miss out on some possible tax deductions that might help you save money and even score you some serious cash. To help get you everything you deserve, here are some often overlooked business expenses.

Tax Deduction #1: Vehicle Expenses

Do you use your vehicle for business purposes? That’s good news, because you can write off several related expenses. For example, you can claim leasing payments, fuel, oil, repairs, maintenance, and even parking fees and depreciation. Keep in mind, however, you have to keep a detailed drive log of all the business km driven in case the Canada Revenue Agency (CRA) requests it.

Tax Deduction #2: Apprenticeship Job Creation Tax Credit

If you own a trade business and are in the market to hire an apprentice, you can get an investment tax credit of up to $2,000. Before you run out and get just anyone, however, the apprentice you plan to bring on board must in the first 2 years of an apprenticeship program registered with the government. Taking advantage of the Apprenticeship Job Creation Tax Credit is great incentive to get the skilled help you need while saving you money at the same time.

Tax Deduction #3: Family Members as Employees

If you are expanding your business and thinking about taking on a new employee, you might want to consider hiring your spouse or even your kids (as long as they are old enough). It might be a smart move to help save you some money. You’ll be able to do some income splitting that will allow to lower your net income, putting your business into a lower tax bracket.

Tax Deduction #4: Investment Tax Credit for Child Care Spaces

If you create new childcare spaces for the children of your employees, you may be able to claim a non-refundable tax credit (as long as you don’t run a child care services business). Business owners may claim the lesser of $10,000 or 25 per cent of the eligible expenses per child-care space created.

Tax Deduction #5: Cleaning Supplies

Are you aware that cleaning supplies are allowable tax deductions?  It’s not uncommon for many small business owners to overlook writing off cleaning supplies during tax time. Sure, it might not seem like much—a bottle of window cleaner here, some paper towels there—but all these little expenses can add up, helping you reduce your net business income amount later. When tax season rolls around, make sure to add everything you can to the small business deductions list, no matter how small.

How can I get more money on my tax return?

Not sure if you qualify for any of these overlooked tax deductions? A great place to start is by sitting down with a professional accountant. They will work with you to help ensure your business receives the best tax return possible.

For a free consultation, contact BCJ, Chartered Professional Accountants today!

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