What are CRA business expenses?
The Canada Revenue Agency (CRA) explains how businesses may claim expenses that are incurred to earn income, with different treatment for current expenses versus depreciable property (claimed through Capital Cost Allowance, or CCA). Consider whether a cost is reasonable for your business, keep supporting records, and refer to current CRA guidance or a qualified professional for your situation. Personal expenses are typically not deductible, so keeping business and personal finances separate can make recordkeeping and reviews easier.
List of common CRA business expenses
Expense categories businesses often review are listed below. Eligibility, allocation, and any limits depend on your facts and current CRA guidance:
- Accounting and other professional fees
- Advertising
- Bad debts
- Bank charges and interest
- Business start-up costs
- Business taxes, dues, fees, and licenses
- Capital cost allowance, such as depreciation of a building, furniture, or equipment
- Delivery, freight, and express charges
- Insurance costs, such as premiums on buildings, machinery, and equipment
- Interest fees, such as the interest paid on money borrowed for your business
- Legal fees
- Maintenance and repairs
- Management and administration fees
- Meals and entertainment (often subject to CRA limits; check current guidance)
- Membership dues in a trade or commercial association
- Motor vehicle expenses (allocate between business and personal use and keep detailed logs)
- Office expenses
- Property taxes
- Rent
- Salaries, wages, and benefits
- Telephone and utilities (allocate business use where applicable)
- Travel to earn business income (e.g., transportation and lodging; meal limits may apply)
FAQs about CRA business expenses in Canada
Do you need receipts for business expenses?
CRA outlines what records to keep and for how long. You typically don’t submit receipts with your return, but CRA may request them during a review or audit, so keep organized records that support your claims.
How do you write off business expenses in Canada?
How you report expenses depends on your business type and filing method. Below are common approaches businesses consider when preparing returns; confirm the steps that apply to your situation using current CRA resources.
Hire an accountant
You may choose to work with a professional to prepare your return. They’ll request your income and expense records, organize supporting documents, and file using the method that applies to your business.
Use tax software
CRA lists certified tax preparation software for different filer types. Many products guide you through income and expense inputs and support electronic filing where available.
Manually complete your taxes
You can also complete your return using CRA forms and publications and mail your package, where applicable. Choose the forms that correspond to your business type and tax year.
Can I claim my cell phone as a business expense in Canada?
Treatment differs for employees versus businesses. CRA has specific rules for employees claiming employment expenses (including some commission employees).
For businesses, costs for phone plans and devices used to earn income may be deductible or claimed via CCA, typically with allocation between business and personal use and appropriate documentation. Check current CRA guidance for the rules that apply to your situation.
If you are a small home-based business that operates most of the time out of a dedicated home office, you may also be able to expense some of your cell phone usage as a business-use-of-home expense.
Because rules, thresholds, and forms can change, refer to your organization’s records and current CRA guidance for the most up‑to‑date details that apply to your business.
