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Home Business Magazine Online
As a home-based business startup in Canada, understanding and leveraging available tax deductions can make a significant impact on your bottom line. While running a business from home offers flexibility and reduced overhead, it also presents unique tax considerations. The article below outlines key deductions that can help you minimize your tax burden and maximize your profits.
Remember, these are common deductions that may or may not apply to your business, and that there may be other deductions, benefits, credits, or programs to which you are entitled to. You can check in with the tax lawyers at Taxpage; their decades of experience can help you to minimize your tax expenses and optimize your returns.
Home Office Expenses
One of the most substantial deductions for home-based businesses is business-use-of-home expenses. You can claim a portion of your housing costs based on the percentage of your home used exclusively for business purposes. Eligible expenses include:
- Mortgage interest or rent
- Property taxes
- Utilities (heat, electricity, water)
- Home insurance
- Maintenance and repairs
- Phone and internet
To calculate your deduction, determine the percentage of your home’s total square footage used for your business. For example, if your home office occupies 10% of your home’s area,...