Ontario Small Business Tax Deductions You Might Be Missing

Deductions Most Businesses Overlook

Every tax season, we see Ontario business owners leaving legitimate deductions unclaimed — simply because they didn't know they qualified. Here are the most commonly missed opportunities.

Home Office Expenses

If you operate your business from home (even partially), you can deduct a proportional share of rent/mortgage interest, utilities, property taxes, insurance, and maintenance. The key is calculating the correct percentage based on dedicated workspace square footage.

Vehicle Expenses

Business-related vehicle use is deductible, including fuel, insurance, maintenance, and depreciation. Keep a detailed mileage log — the CRA requires it for audit purposes.

Professional Development

Courses, certifications, conferences, and industry memberships directly related to your business are fully deductible.

Meals and Entertainment

Business meals with clients or prospects are 50% deductible. Keep receipts and note the business purpose and attendees on each receipt.

Technology and Software

Computers, phones, software subscriptions, and cloud services used for business are deductible — either fully in the year of purchase or depreciated over time.

Bad Debts

If a client owes you money and you've exhausted collection efforts, the uncollectible amount can be written off as a bad debt deduction.

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