Can You Write Off Your Coworking Space for A Tax Break?

As a self-employed individual or a small business owner living in Canada, there are a variety of items you can claim as an expense on your taxes from year to year. By claiming these expenses, you would be lowering your tax obligation; therefore, reducing the amount of money you have to pay out in taxes at year-end! 

As explained by WealthSimple, “Canada has a graduated or progressive tax system, which means the more you earn the more you pay.” As such, it is important to show the government just how much money you spend each year to effectively run your business. Essentially, any product or service you purchased to run your business can be considered a tax write-off!

Canada Small Business Tax Write-Offs 

Wherever you conduct business can be considered a tax deduction in Canada. The Canada Revenue Agency (CRA) allows individuals who consider themselves self-employed or business owners to claim home office expenses if the space is used regularly and exclusively for work purposes.

From your office space to the program you use to keep track of your orders, there are many things you can write off as an expense when it comes to your Canada self-employed taxes. With so many possibilities, it is recommended that you keep track of every product or service you purchase for your business throughout the year.

Review our list of top small business expenses that can normally be applied as tax deductions! 

Ontario Office Space Tax Write-Off

Whether you exclusively work from a room in your house or you choose to rent a private workspace, you can deduct both expenses as a tax write-off. The expenses a self-employed individual or business owner spends on a coworking space can be considered a tax credit. 

Here at Catalyst Kanata, we provide our self-employed and entrepreneurial members with everything they need to succeed. From high-speed WiFi to unmatched amenities such as keyless access and 24/7 video surveillance, we are committed to curating a well-rounded experience that promotes business growth. 

Conveniently, members of the Catalyst Kanata coworking space in Kanata, Ontario have the ability to claim their rental fees as an expense. By doing so, you will lower your tax obligation in the government’s eyes and owe even less on your taxes. 

If you work from home or have a private office space, you can also figure in a fraction of the amount of money you spend on utilities, mortgage, property taxes, and even home insurance. Don’t forget to deduct all of the items you paid for to make daily operations possible. This can include, but is not limited to, your laptop, office chair, desk, pens, and even the sticky notes you use to jot down your brilliant ideas! 

Top Small Business Tax Write-Offs

Did you just make a purchase for your business? Write it down! Anything purchased for the growth, success, or daily operation of your business should always be factored as a deduction in your taxes. Check out our list of the most common write-offs for small businesses in Ontario:

  • Advertising and Promotion

  • Coworking Space Membership

  • Private Office Space Membership

  • Business Interruption Insurance

  • Training and Education Expenses

  • Supplies and Equipment

  • Liability Insurance

  • Travel Expenses 

  • Legal Fees

  • The list goes on! 

Of course, any expense you deduct on your taxes needs to truly be for your business. For example, a vacation with your friends to Costa Rica wouldn’t be considered a “travel expense” for your small business. With that being said, it’s always recommended to consult a tax professional to ensure you are aligning with the government’s expectations regarding your tax obligations. 

Grow Your Business This Year with a Coworking Space

Did you know that coworking spaces and private offices have been directly linked to small business growth? That’s because they promote networking and productivity, among other positive attributes. For more insight, review our articles about The Many Perks of Using a Private Office Space

If you are a self-employed individual or business owner in the Ottawa area , our team at Catalyst Kanata would like to invite you to come visit our celebrated, modern coworking spaces. Our facilities were designed with your success in mind. Reach Out to schedule a visit or to speak to a member of our team about any questions you may have! 


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