Business Expenses

All reasonable expenses incurred to earn business income are deductible for tax purposes, with specific restrictions based on expense type.

A maximum of 50% of meal and entertainment costs can be claimed.
Includes dining with clients or business-related entertainment directly tied to earning income.

Deductible costs: fuel, maintenance, repairs, insurance, and licensing fees.
Depreciation (or lease payments) can be claimed within prescribed limits.
Only the business-use portion is deductible, calculated as business kilometers driven divided by total kilometers.
Note: Commuting between home and business premises is not deductible.
Maintain detailed mileage logs to support claims.

Deductible if your home is your principal business location or a dedicated space for business and client meetings.
Eligible expenses: mortgage interest, rent, property taxes, insurance, utilities, repairs, and maintenance.
Deduction is based on the proportion of business space relative to total home space.
Special rules apply in Québec.
Claiming depreciation (CCA) on the business portion may impact your principal-residence exemption when selling.
The total home office expense deduction cannot exceed business income but can be carried forward.

Up to two business-related conventions can be claimed annually.
Must be held at a location relevant to your business or professional field.
Meals and entertainment at conventions are subject to the 50% deductibility limit.

Tangible and intangible assets used in your business can be depreciated via Capital Cost Allowance (CCA).
Examples: vehicles, equipment, furniture, intellectual property.
CCA follows a declining-balance method with deduction rates based on asset class.
Only assets “available for use” in the business during the tax year are eligible.

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