Top 10 Tax Write-Offs for Canadian Small Businesses

Introduction

• Presenter: Jessica Morehouse
• Topic: Tax write-offs for Canadian small businesses
• Channel focus: Money, personal finance, entrepreneurship, investing
• Sponsor: Reinvest Wealth (cloud accounting software)

What is a Write-Off?

• Write-off: Another term for tax deduction
• Tax deduction: Reduces taxable income, lowering overall tax bill
• Example: Earn $100,000, with $20,000 business expenses → Taxable income = $80,000

Qualifying Business Expenses

• Expenses must be necessary to operate or generate income for the business
• Not all expenses qualify (must comply with CRA guidelines)

Top 10 Tax Write-Offs

1. Advertising & Marketing

• Examples: Website hosting, paid search, display ads
• Traditional methods: TV or radio spots
• Other: Podcast ads, event hosting

2. Travel Expenses

• Includes: Bus tickets, train tickets, Uber rides, flights, hotels
• Criteria: Must be related to generating business income

3. Professional Dues

• Examples: Annual fees for professional designations (e.g., financial counselor, lawyer)
• Also includes liability insurance premiums

4. Commercial Insurance

• Premiums for insuring buildings, machinery, or equipment
• Protects business assets and is tax-deductible

5. Bank and Payment Processing Fees

• Includes: Bank fees, payment processing fees (e.g., Stripe fees)
• Personal banking fees generally not deductible

6. Interest on Loans

• Interest on business loans and property acquisition loans
• Penalties for early loan repayment are also deductible

7. Business Use of Home Expenses

• Includes: Heat, electricity, water, property taxes, mortgage interest
• Only a percentage based on the business-use portion of the home
• Rent is also deductible if you're a tenant

8. Professional Fees

• Examples: Legal, accounting, consulting fees
• Keep receipts and invoices

9. Office Expenses

• Small items: Printer ink, paper, pens, notebooks, Post-its
• Larger items (filing cabinets, furniture) are categorized as capital items (depreciated over years)

10. Office Supplies

• Examples: Subscriptions to software/apps (Adobe, Dropbox, HelloSign, Loom)
• Reinvest Wealth subscriptions are also deductible

Reinvest Wealth Platform

• Features: Connects with Google account, integrates with multiple banks
• Tracks: Monthly cash flow, business expenses, tax estimates, and net income
• Recommendation Engine: Suggests tax-deductible services and products

Conclusion

• Investing in accounting software, bookkeepers, and accountants is beneficial
• Try Reinvest Wealth for accounting needs; base software is free
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