Expenses

You can deduct on your income tax return any reasonable expenses you incur to earn your daycare income. However, you cannot deduct personal expenses.

With the links below, we describe many of the expenses you can deduct if you incur them to run your daycare. Also, we tell you on which line of Form T2125, Statement of Business or Professional Activities, you can claim each kind of expense. This form may help you calculate your self-employment income. We encourage you to use it, but we still accept other types of financial statements.

List of expenses that are deductible:

• Advertising
• Business-use-of-home expenses
• Business taxes, fees, licences, dues, membership, and subscriptions
• Capital cost allowance (CCA) for your daycare
• Field trips
• Legal, accounting, and other professional fees
• Maintenance and repairs
• Management and administration fees
• Motor vehicle expenses
• Office expenses
• Other expenses
• Salaries, wages, and benefits
• Supplies

There are other expenses that may apply to your situation. See Sole proprietors and partnerships or Chapter 3 in Guide T4002, Business and Professional Income.

Note
Do not send your receipts or other records with your income tax return. However, you must keep them in case we ask to see them later. For more information see Keeping daycare records.

Forms and publications

• Guide T4002, Business and Professional Income
• Booklet P134, Using your Home for Daycare
• Form T2125, Statement of Business or Professional Activities