Operating Expenses

If you are a self-employed person or a member of a partnership, you can deduct certain expenses from your business income.

Deductible expenses

As a rule, you can deduct any reasonable expense incurred to earn business income. However, certain expenses are not deductible. These include

  • investments;
  • capital expenditures or capital losses;
  • reserves (also called "contingent accounts" or "sinking funds"), unless their deduction is expressly permitted under the Taxation Act; and
  • expenses incurred to establish a business, before operations actually begin.

Refer to the document Business and Professional Income (IN-155-V) for more information about the deductions to which you may be entitled. You will find information about:

Member of a partnership

As a member of a partnership, you can deduct from your share of the partnership's income (or loss) the expenses you incurred with respect to that income (or loss), provided the expenses:

  • are not included in the partnership's expenses;
  • are deductible only by you; and
  • are not reimbursed to you.

Fair. For all.

One vision. Concrete actions.

Read all about how we work to support and inform you. Our vision and values guide us as we carry out our role.

Veuillez patienter