Check if this expense is claimable, before you bin the receipt.
For sole proprietors, subcontractors and incorporated tradespeople who want to stop leaving money on the table at tax time.
Sound familiar?
- “You are not sure which of your costs you can actually claim against tax.”
- “You do not want to claim something the CRA will throw out and penalise you for.”
- “You mix business and personal spending and do not know where the line is.”
What this tool does
Checks an expense against CRA's 'incurred to earn income' test, typical trade deductibility rules, and GST/HST input tax credit rules where you're GST/HST-registered. Flags partial claims (like phone and home costs) with the usual apportionment.
What expense do you want to check?
What the law actually says
- •Under the Income Tax Act you can deduct reasonable expenses you incur to earn business income - tools, materials, business use of your vehicle, and similar. Personal or living costs are not deductible, meals and entertainment are generally limited to 50 percent, and the CRA expects you to keep receipts and records (normally six years) to back up every claim.