Business Expenses That Are 100% Tax Deductible in Canada

February 18, 2025
Business Expenses That Are 100% Tax Deductible in Canada

Introduction

Canadian businesses can claim various expenses to lower their taxable income. While some expenses are only partially deductible, others qualify for 100% deduction.

 

100% Tax-Deductible Business Expenses

  • Accounting & Legal Fees: Fees paid to accountants, lawyers, or tax consultants.
  • Office Supplies: Pens, paper, printer ink, and business-related stationery.
  • Advertising & Marketing: Website costs, social media ads, business cards.
  • Professional Development: Courses, certifications, industry seminars.
  • Software & Subscriptions: Cloud services, bookkeeping software, and business-related apps.
  • Vehicle Expenses (For Business Use Only): Fuel, repairs, lease payments (if not personal use).
  • Travel Expenses: Flights, hotels, meals (for business trips).
  • Salaries & Wages: Employee salaries and contractor payments.

 

How to Properly Claim Business Expenses

  • Keep receipts and invoices for all expenses.
  • Use Form T2125 (Statement of Business or Professional Activities) when filing.
  • If an expense is partially personal, claim only the business-related portion.

 

Conclusion

Taking advantage of 100% deductible business expenses helps reduce your tax bill significantly. Keeping organized records ensures smooth tax filing and compliance with CRA regulations.

 

This article is written for educational purposes.

 

Should you have any inquiries, please do not hesitate to contact us at (905) 836-8755, via email at [email protected], or by visiting our website at www.taxpartners.ca.

 

Tax Partners has been operational since 1981 and is recognized as one of the leading tax and accounting firms in North America. Contact us today for a FREE initial consultation appointment.

 

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