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)
