The amount you can deduct in a given year for any expense depends if it is considered a current year expense or capital expense. For more information, see Basic information about Capital Cost Allowance, and Current or capital expenses.
The expenses you can deduct include any GST/HST you incur on these expenses less the amount of any input tax credit claimed.
Since you cannot deduct personal expenses, deduct only the business part of expenses from business income. In addition, you cannot claim expenses you incur to buy capital property.
For more information, see the list of expenses below.
When you claim the GST/HST you paid on your business expenses as an input tax credit, reduce the amounts of the business expenses you show on Form T2125, Statement of Business or Professional Activities, by the amount of the input tax credit. Do this when the GST/HST for which you are claiming the input tax credit was paid or became payable.
Similarly, subtract any other rebate, grant, or assistance from the expense to which it applies. Enter the net figure on the proper line. Any such assistance you claim for the purchase of depreciable property used in your business will affect your claim for capital cost allowance (CCA) .
If you cannot apply the rebate, grant, or assistance you received to reduce a particular expense, or to reduce an asset's capital cost, include the total on line 8230 - Other income in Part 3 of Form T2125.
List of expenses
- Advertising (Line 8521)
- Allowance on eligible capital property (Line 9935)
- Bad debts (Line 8590)
- Business start-up costs
- Business tax, fees, licences, dues, memberships, and subscriptions (Line 8760)
- Business-use-of-home expenses (Line 9945)
- Capital cost allowance (Line 9936)
- Current or capital expenses
- Delivery, freight, and express (Line 9275)
- Fuel costs (except for motor vehicles) (Line 9224)
- Insurance (Line 8690)
- Interest (Line 8710)
- Legal, accounting, and other professional fees (Line 8860)
- Maintenance and repairs (Line 8960)
- Management and administration fees (Line 8871)
- Meals and entertainment (allowable part only) (Line 8523)
- Motor vehicle expenses
- Office expenses (Line 8810)
- Prepaid expenses
- Property taxes (Line 9180)
- Rent (Line 8910)
- Salaries, wages, and benefits (including employer's contributions) (Line 9060)
- Supplies (Line 8811)
- Telephone and utilities (Line 9220)
- Travel (Line 9200)
- Other expenses (Line 9270)
Forms and publications
- Guide T4002, Business and Professional Income
- Form T2125, Statement of Business or Professional Activities
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