5 Tax Deductions Durham Region Small Businesses Often Miss

Published on February 13, 2026

For small business owners in Durham Region, navigating the complexities of the Canadian tax system can be a daunting task. While you focus on growing your business, it's easy to overlook valuable deductions that could save you a significant amount of money. At Azim Tax & Accounting, we help businesses in Oshawa, Whitby, Ajax, and beyond stay on top of their finances. Here are five common tax deductions that small businesses often miss.

1. Home Office Expenses

If you run your business from home, you can deduct a portion of your household expenses. This includes a percentage of your rent or mortgage interest, utilities (hydro, heating), property taxes, and home insurance. The key is that the workspace must be your principal place of business, or used exclusively for business on a regular and continuous basis. The deductible amount is calculated based on the square footage of your office relative to the total size of your home.

2. Vehicle Expenses

If you use your personal vehicle for business purposes, you can deduct a portion of its operating costs. This includes gas, insurance, registration fees, maintenance, and even depreciation (Capital Cost Allowance). To claim these expenses, you must meticulously track your mileage. Keep a logbook detailing the date, destination, purpose, and distance of each business trip. You can then deduct the business-use percentage of your total vehicle costs.

3. Professional Development and Training

Investing in your skills is investing in your business. The cost of courses, seminars, and workshops that are relevant to your industry is often fully deductible. This could include a marketing course for a freelance designer or a software training session for a bookkeeper. These expenses help you stay competitive and are considered a legitimate cost of doing business by the Canada Revenue Agency (CRA).

4. Advertising and Promotion Costs

While most business owners remember to deduct major advertising campaigns, many forget the smaller costs. Expenses like printing business cards, sponsoring a local community event, social media advertising, and even website hosting fees are all deductible. Any cost associated with promoting your brand and attracting customers can be claimed, so keep detailed records of all your marketing efforts.

5. Bank Charges and Interest

The fees you pay for your business bank accounts, including monthly service charges and fees for processing payments, are deductible. Additionally, the interest on any loans taken out for business purposes, such as a loan to purchase equipment or manage cash flow, can also be claimed. These small but frequent costs can add up over the year, providing a valuable deduction.

Conclusion

Properly tracking and claiming all eligible deductions is crucial for the financial health of your small business. It ensures you're not paying more tax than necessary, freeing up capital that can be reinvested into your company. If you're unsure about what you can claim, it's always best to consult with a professional. Contact Azim Tax & Accounting today for a free consultation to see how we can help your Durham Region business thrive.

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