Understanding Tax Deductions for Small Businesses

June 23, 2025

Understanding Tax Deductions for Small Businesses

What are Tax Deductions?

Tax deductions are expenses that you can subtract from your gross income to lower your taxable income. This means you pay taxes on a smaller amount, potentially saving you money.


Common Tax Deductions for Small Businesses

Several expenses may be deductible, but it's crucial to keep detailed records and consult a tax professional for personalised advice.


Business Expenses

These include costs directly related to running your business.

 

●     Office Supplies: Pens, paper, printer ink, etc.

●     Rent: Payment for office space or business property.

●     Utilities: Electricity, water, internet, etc.

●     Advertising and Marketing: Costs associated with promoting your business.


Vehicle Expenses

If you use a vehicle for business purposes, you may be able to deduct expenses.

 

●     Kilometres: Tracking business kilometres can result in a deduction.

●     Vehicle Expenses: Fuel, maintenance, and insurance may be deductible.


Home Office Deduction

If you use part of your home exclusively for business, you might qualify.

 

●     Square Footage: The portion of your home used for business is deductible.

●     Direct Expenses: Expenses directly related to the home office space.


Travel Expenses

Business-related travel expenses are often deductible.

 

●     Travel: Flights, trains, and car rentals for business trips.

●     Accommodation: Hotel costs for business travel.

●     Meals: Business meals with clients or colleagues.


Education and Training

Costs for courses or training that maintain or improve your business skills.


Record Keeping

Accurate records are essential for claiming deductions. Keep receipts, invoices, and other documentation to support your claims.


Disclaimer

This information is for general guidance only and does not constitute professional tax advice. Consult with a qualified tax advisor or accountant for specific guidance related to your business situation.

 



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