You may not have thought about tax season yet but it’s soon approaching and we’d like to help! Payfirma’s mandate is to help people build a successful business, which is why we wanted to share a quick tax tip to help you get the most out of your credit card processing. Here’s the tip:
Credit Card Processing Fees are Tax Deductible!
As a Canadian business, your credit card processing fees can be treated as a business expense on your tax return. Business expenses are a known deductible but some merchants may not know that their credit card processing fees qualify as a business expense. Depending on how many credit card transactions you make in a year, your processing fees can be significant. The silver lining is that those same fees can give you a decent tax write-off when you prepare your tax return.
Your credit card processing fees can help you save a bit of coin this year but so can other business deductions. If you’re a new business, you can even claim startup capital used on getting your new business up and running, as well as office equipment, software, and rent on your business property.
Here’s a link to the CRA website with a list of business expenses that can be deducted: http://www.cra-arc.gc.ca/tx/bsnss/tpcs/slprtnr/bsnssxpnss/menu-eng.html
All tax preparation should be looked over by a certified tax/accounting professional. When you meet with them, be sure to ask if you qualify for any other business deductions.