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Guide2026-06-05·6 min

Expense records that make deduction review easier

Guide

The best deduction workflow starts before the tax return.

Instead of asking "what can I claim?" at the deadline, a small corporation should ask:

What records support this expense, and what still needs review?

The CRA generally expects business expenses to be reasonable and connected to earning income. Some costs are current expenses. Others may be capital expenses that are handled over time through capital cost allowance.

Home office or workspace costs

Review questions:

  • Was the space used to earn business income?
  • Is the allocation reasonable?
  • Are supporting records available?

Evidence to keep:

  • lease or ownership context;
  • utility or maintenance records;
  • notes on how the business-use portion was calculated.

Vehicle expenses

Review questions:

  • Which trips were business-related?
  • Is there a mileage log or other support?
  • Are personal and business uses separated?

Evidence to keep:

  • mileage log;
  • fuel, insurance, registration, and repair records;
  • owner confirmation of business-use assumptions.

Professional fees

Review questions:

  • Was the service connected to earning business income?
  • Is the invoice attached?
  • Does the service relate to current operations, a capital transaction, or a complex matter?

Evidence to keep:

  • invoices from accountants, lawyers, consultants, or software providers;
  • engagement notes when the purpose is not obvious.

Advertising and marketing

Review questions:

  • Was the spend for business promotion?
  • Are platform receipts or invoices available?
  • Are meals, entertainment, or mixed-purpose items separated for review?

Evidence to keep:

  • ad platform receipts;
  • agency or freelancer invoices;
  • notes on campaigns or business purpose.

Assets and CCA review

Large purchases such as computers, equipment, furniture, or vehicles may need capital treatment rather than immediate expensing.

Review questions:

  • What was purchased?
  • When was it available for use?
  • Is it used fully or partly for business?
  • Does it need CCA classification review?

Evidence to keep:

  • purchase invoices;
  • serial numbers or asset descriptions;
  • business-use notes;
  • disposal records when an asset is sold or retired.

How OPTAX fits

OPTAX should not tell an owner to take an aggressive position. It should organize records, surface missing evidence, and create review questions before package output.

The goal is a cleaner path from expense records to a review-ready T2 package.

Official starting points:

Boundary

This article is preparation guidance, not tax advice. Deductibility depends on the corporation's facts. Review complex items with a qualified professional.