You can generally deduct business expenses – if they are incurred to produce income. If you claim expenses, you must be able to back up your claim. You do this by keeping records of all your business-related expenses and recording the expenses in a journal or excel. Examples of expenses you can deduct:

  • Accounting/Legal Fees
  • Advertising Expenses
  • Professional Fees and Dues
  • License Costs
  • Interest and Bank Charges
  • Meals and Entertainment
  • Maintenance, Repairs and Vehicle Expenses
  • Use of a Workspace In Your Home
  • Inventory and Costs Of Goods Sold

Related information is available from the Canada Revenue Agency and the CRA’s Business and Professional Income T2125 tax guide.