Top Tax Deductions for Small Businesses in 2025 | MiAccounting
As a small business owner, maximizing your tax deductions is crucial for reducing your taxable income and keeping more money in your pocket. Many business owners overlook key deductions that could make a significant impact on their bottom line. Whether you run a consulting firm, a real estate corporation (PREC), or an e-commerce business, here’s a breakdown of commonly missed tax deductions for 2025 to help you save on taxes and improve your business cash flow.
1. Home Office Deduction
If you operate your business from home, you can claim a portion of your rent or mortgage, utilities, property taxes, and home insurance. To qualify, the space must be used exclusively for business purposes.
2. Business Use of a Vehicle
Mileage and vehicle expenses can be deducted if used for business purposes. Keep a detailed log of your trips and expenses like fuel, maintenance, and insurance. Tax professionals at MiAccounting can help ensure compliance with CRA regulations.
3. Office Supplies & Equipment
Paper, pens, laptops, printers, software subscriptions, and even furniture purchases for your business qualify as deductions. Tracking these expenses properly can help lower your taxable income.
4. Professional Development & Training
If you take courses, attend conferences, or subscribe to industry-related materials, these expenses are deductible. This is especially useful for consultants and professionals in highly regulated industries.
5. Marketing & Advertising
Online ads, website hosting, branding, social media management, and business cards all count as deductible expenses. Investing in digital marketing is crucial for growing your business and generating leads.
6. Employee Salaries & Contractor Payments
Payroll expenses, including salaries, commissions, and employer-paid benefits, can be deducted. If you hire freelancers or contractors, those payments qualify too—just ensure they provide invoices and tax information. MiAccounting offers payroll management services to help streamline this process.
7. Interest on Business Loans & Credit Cards
If you took out a loan or used a business credit card, any interest paid on those accounts is deductible. Proper financial management and tracking interest expenses can help optimize your tax strategy.
8. Business Meals & Entertainment
Meals with clients, networking events, and team lunches are deductible up to 50%. Keep receipts and document the purpose of each meal for tax compliance.
9. Software & Subscriptions
Any business-related software like accounting tools (QuickBooks, Xero), project management tools (ClickUp, Google Workspace), and industry-specific platforms are deductible. MiAccounting can help you choose the right software to manage your finances efficiently.
10. Rent for Commercial Space
If you lease an office, storefront, or warehouse, those rental payments are fully deductible. Real estate expenses can significantly impact your tax return, so ensure they are properly recorded.
Industry-Specific Deductions
Here’s a look at some deductions specific to different business sectors:
Real Estate Agents & PRECs
- Brokerage fees
- MLS and association fees
- Staging and home photography costs
- Marketing materials (flyers, business cards, signage)
- Vehicle expenses for client meetings and showings
Consultants & Freelancers
- Co-working space rent
- Professional liability insurance
- Online tools for client management (Zoom, Calendly, etc.)
- Education and certifications
- Internet and phone expenses
E-Commerce Businesses
- Shipping and packaging costs
- Warehousing fees
- Payment processing fees (PayPal, Stripe, etc.)
- Website maintenance and hosting
- Product photography and listing fees
Final Tips for Claiming Deductions
- Keep Accurate Records: Use accounting software or hire a professional to track expenses.
- Save All Receipts: Digital copies are acceptable but must be organized and accessible.
- Consult a Tax Professional: Each business has unique needs, and a tax expert can ensure you maximize deductions while staying compliant.
Get Expert Tax Help from MiAccounting
At MiAccounting, we specialize in small business accounting, tax preparation, and bookkeeping services to help business owners maximize tax savings and stay compliant with CRA regulations. Our expert team ensures you claim all eligible deductions while streamlining your finances for long-term success.
📞 Contact us today for a consultation and let us handle your tax planning for 2025!
📍 Visit our website: www.miaccounting.com📧 Email us: info@miaccounting.com
