Every dollar of deductible business expense reduces taxable income. At Quebec's ~12.2% small business rate, each $10,000 in deductions saves ~$1,220 in tax.
Fully Deductible Operating Expenses
- Rent, utilities, and business premises costs
- Salaries, wages, bonuses, and employee benefits
- Professional fees: accounting, legal, consulting
- Business insurance premiums
- Office supplies and materials
- Software subscriptions: Microsoft 365, accounting software, CRM
- Advertising and marketing including website and SEO
- Business telephone and internet
- Bank charges and payment processing fees
Partially Deductible
- Meals and entertainment: 50% when business purpose is documented
- Vehicle: Business-use percentage only
Commonly Missed Deductions
- Parking at client and business locations
- Business app purchases and digital subscriptions
- Convention attendance (limit: 2 per year)
- Professional association dues
- Work-specific clothing and PPE
- Business portion of cell phone and home internet
An annual expense review at fiscal year-end consistently finds missed deductions worth 1.5–3× the review cost.