There are so many things to know about doing your business taxes and it can be overwhelming if you’re not prepared. When you do your 2017 business taxes next year, here are a few tax deductions that can help minimize any taxes owing:
- Your office party: You can only claim 50% of your business meals and entertainment on your taxes, but did you know if you invite your whole staff to an event (like the holiday Christmas party), it’s 100% deductible? Talk to your tax accountant before trying to claim liquor as it’s usually not deductible unless it’s served as part of a meal.
- Conventions: As long as they directly relate to your business you can deduct the cost of up to 2 conventions each year. Meals and entertainment at the conference are only 50% deductible.
- Employee and client gifts: Gifts for staff can be written off as business expenses as long as they’re not cash or gift cards (those are taxable as income). However, any gift for a client can be written off (just keep it at a reasonable amount).
- Apprentice tax credit: Get up to $2000 credit per year for each apprentice you have in your employ. This only applies to eligible trades. Learn more about this tax credit from the Red Seal Program.
- Private Health Services plans: If you have a plan where you reimburse medical expenses under the Income Tax Act you can write it off as a business expense. Learn more about what qualifies on the CRA website.
- Accounting/Legal fees: When you need a little accounting or legal help for your business, you can get it knowing it’s deductible at tax time.
Make sure to track and keep receipts for any expenses you plan to claim for tax deductions. Your accountant or the CRA may request these to verify your claims at anytime.