Every deduction self-employed Canadians should be claiming — and how to document them properly.
One of the largest deductions for most gig workers. Two methods:
Mileage logs are mandatory regardless of method. App options: MileIQ, Everlance, or a spreadsheet.
If you use part of your home regularly and primarily for business, you can deduct a percentage of home costs. Calculate: workspace area (sq ft) ÷ total home area (sq ft) = business-use %.
Deductible home costs include: rent (or mortgage interest for owners — not principal), utilities, internet, and property taxes. A dedicated room is more defensible than a corner of a living room.
Your cell phone and internet are partially deductible based on business-use percentage. If you use your phone 60% for business (client calls, app use, navigation), claim 60% of your monthly bill. Keep records of how you determined the business-use percentage.
Cameras, laptops, delivery equipment, tools — these are deductible either as immediate expenses (if under the immediate expensing threshold) or as Capital Cost Allowance (CCA) over time. CCA classes for common gig worker equipment:
| Equipment | CCA Class | Annual Rate |
|---|---|---|
| Laptops, computers | Class 50 | 55% |
| Cameras, tools, office furniture | Class 8 | 20% |
| Vehicles (most cars) | Class 10 / 10.1 | 30% |
| Software (not subscription) | Class 12 | 100% |
| Phone | Class 8 | 20% |
Courses, workshops, books, and certifications directly related to your business are deductible. A Uber driver taking a defensive driving course: deductible. A photographer taking a lighting masterclass: deductible. A VA taking a project management course: deductible. Keep receipts and be able to explain the direct connection to your business.
Website hosting, domain names, Facebook ads, Google ads, business cards, flyers, and Kijiji listings are 100% deductible business expenses. If you pay a contractor to build your website or design your logo, that is also deductible.
Monthly subscriptions for business tools are fully deductible: accounting software (Wave, QuickBooks, FreshBooks), project management (Asana, Trello), design (Canva, Adobe CC), communication (Slack, Zoom paid tier), and any other tool used in your business.
Accounting fees, tax preparation costs, and legal fees related to your business are 100% deductible. This includes the cost of hiring a CPA to file your T2125. Bank fees for a dedicated business account are also deductible.
Business liability insurance, equipment insurance, and any other coverage specifically for your business activity is deductible. Personal auto insurance is only deductible at the business-use percentage of your vehicle.
Any materials consumed in the course of providing your service: cleaning supplies for Airbnb hosts, yarn for Etsy sellers, cooking ingredients for food businesses, office supplies for VAs. Keep itemized receipts — credit card statements alone may not be enough for CRA.
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Get KOHO Free — Use Code 45ET55JSYAInformational only. Not tax or legal advice. Consult a CPA for your specific situation and to ensure compliance with CRA rules.