If you're self-employed in Canada, you report business income and expenses on Form T2125, Statement of Business or Professional Activities. Sorting expenses into the form's lines as you go makes tax time much easier. Here are the business expense lines and what usually goes on each.
| Line | Category | Notes |
|---|---|---|
| 8521 | Advertising | |
| 8523 | Meals and entertainment | Generally only 50% is deductible |
| 8590 | Bad debts | |
| 8690 | Insurance | |
| 8710 | Interest and bank charges | |
| 8760 | Business taxes, licences and memberships | |
| 8810 | Office expenses | |
| 8811 | Office stationery and supplies | |
| 8860 | Professional fees (includes legal and accounting fees) | |
| 8871 | Management and administration fees | |
| 8910 | Rent | |
| 8960 | Repairs and maintenance | |
| 9060 | Salaries, wages and benefits (including employer's contributions) | |
| 9180 | Property taxes | |
| 9200 | Travel expenses | |
| 9220 | Utilities | |
| 9224 | Fuel costs (except for motor vehicles) | |
| 9275 | Delivery, freight and express | |
| 9281 | Motor vehicle expenses (not including CCA) | Business-use portion only, calculated in the form's vehicle chart |
| 9936 | Capital cost allowance (CCA) | For depreciable property such as computers. Calculated in the CCA area of the form |
| 9945 | Business-use-of-home expenses | Calculated separately; limits apply |
| 9270 | Other expenses |
Want this in a spreadsheet? The Canada Self-Employed Income, Expense & GST/HST Tracker ($19 CAD, Excel/Google Sheets) does these totals for you.