Business Expenses

This subsection covers the Canadian tax terms used to classify self-employment and small-business costs before they feed into T2125 and T1 reporting.

What Belongs Here

Use this subsection when the question is not just whether a business spent money, but how that cost is treated for Canadian tax purposes.

Best Starting Pages

• Current Expense
• Capital Expense
• Capital Cost Allowance
• T2125 Statement of Business or Professional Activities

Practical Reader Path

• Start with Current Expense when the cost looks like an ordinary operating expense for the year.
• Start with Capital Expense when the spending created or improved a longer-lived asset.
• Move to Capital Cost Allowance when the question becomes how an eligible capital cost is deducted over time.

In this section

• Capital Cost Allowance
  Capital cost allowance is the system for deducting eligible business capital costs over time instead of all at once.
• Capital Expense
  Capital expenses buy or improve longer-term business property and are usually handled through capital-cost rules instead of immediate deduction.
• Current Expense
  Current expenses are ordinary business costs normally deducted in the year rather than capitalized.