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CRA Expense Categories

Search CRA-recognized expense categories for T2125 (sole proprietors) and T2 (corporations). /* tooltip: CRA: Canada Revenue Agency */

Showing 26 of 26 categories
AdvertisingT2125Line 8521

Advertising, marketing, promotional materials

100%
deductible
Meals and entertainmentT2125Line 8523

Business meals: 50% deductible. Long-haul truckers: 80%

50%
deductible
Bad debtsT2125Line 8590

Debts owed to you that you cannot collect

100%
deductible
InsuranceT2125Line 8690

Business insurance premiums (not personal life/health)

100%
deductible
Interest and bank chargesT2125Line 8710

Interest on business loans, bank fees, credit card annual fees

100%
deductible
Business tax, fees, licences, duesT2125Line 8760

Professional dues, business licences, municipal taxes

100%
deductible
Office expensesT2125Line 8810

General office supplies consumed quickly: pens, paper, toner

100%
deductible
Professional feesT2125Line 8860

Legal fees, accounting fees, consulting fees

100%
deductible
Management and admin feesT2125Line 8871

Management fees paid to related entities

100%
deductible
RentT2125Line 8910

Office or clinic rent, equipment rental

100%
deductible
Salaries, wages, benefitsT2125Line 8960

Employee salaries, wages, benefits, employer CPP/EI

100%
deductible
Property taxesT2125Line 9060

Municipal property taxes on business property

100%
deductible
Travel expensesT2125Line 9180

Transportation, lodging for business travel. Not commuting.

100%
deductible
Telephone and utilitiesT2125Line 9200

Business phone, internet, electricity, water, heating

100%
deductible
Motor vehicle expensesT2125Line 9275

Gas, insurance, repairs, lease for business vehicle. Pro-rate if mixed use.

100%
deductible
Capital cost allowance (CCA)T2125Line 9281

Depreciation on capital assets (computers, furniture, vehicles)

100%
deductible
Salary expenseT2Line T2_SALARY

Salaries paid to shareholder-employees and staff

100%
deductible
Dividend expenseT2Line T2_DIVIDEND

Dividends declared — not deductible, affects RDTOH refund

0%
deductible
Professional fees (corp)T2Line T2_PROFESSIONAL

Legal, accounting, consulting fees for the corporation

100%
deductible
Rent and occupancy (corp)T2Line T2_RENT

Office rent, shared clinic space, utilities

100%
deductible
Office and administration (corp)T2Line T2_OFFICE

Office supplies, software, subscriptions

100%
deductible
Travel and vehicle (corp)T2Line T2_TRAVEL

Business travel, conference attendance, vehicle costs

100%
deductible
Insurance (corp)T2Line T2_INSURANCE

Corporate liability, E&O, key-person insurance

100%
deductible
Interest and bank charges (corp)T2Line T2_INTEREST

Corporate loans, credit facility fees, bank charges

100%
deductible
Training and education (corp)T2Line T2_TRAINING

Continuing education, conferences, professional development

100%
deductible
Technology and software (corp)T2Line T2_TECHNOLOGY

Software subscriptions, cloud services, IT equipment

100%
deductible
Estimates only. Consult your CPA.

CorpBooks automatically categorizes your expenses into these CRA categories using AI. /* tooltip: CRA: Canada Revenue Agency */