Personal tax
Self-employed expenses CRA actually allows
2026-10-07 · 6 min read · Tax Everyday, Vaughan
A self-employed expense is deductible when you incur it to earn business income and it is reasonable. Personal living costs are not. The return is the T2125, filed with your T1, and the deadline is June 15 — but any balance owing is still due April 30.
Common claims, with the catch
If the records are a camera roll, send them through the file drop and we will tell you what is usable before we quote the return.
- Vehicle: kilometres for business versus total. CRA wants a log, not a round percentage you picked in April.
- Home office: the workspace must be your principal place of business, or used exclusively to meet clients. Claim the business portion of rent or mortgage interest, utilities, and insurance — not the whole house, and mortgage principal is not deductible.
- Meals with a client: generally 50%, and you need the receipt plus who you met and why.
- Phone and software: the business portion. A phone used half the time for family is a 50% claim, not 100%.
- Gear: small tools may be current expenses. A laptop or equipment above the current-expense comfort zone is capital cost allowance, claimed over years.
Want this applied to your file?
These notes are general. A return is prepared only after we see your slips.