Expenses

You can deduct, on your income tax return, any reasonable expenses you incur to earn your day-care income.

However, you cannot deduct personal expenses.

You can deduct any of the following expenses if you incur them to run your day care.

We encourage you to use Form T2124, Statement of Business Activities, and to submit it with your income tax return.

List of expenses that are deductible:

• Advertising
• Business-use-of-home expenses
• Business taxes, fees, licences, dues, membership and subscriptions
• Capital cost allowance (CCA)
• Field trips
• Legal, accounting and other professional fees
• Maintenance and repairs
• Management and administration fees
• Motor Vehicle expenses
• Office expenses
• Other expenses
• Salaries, wages, and benefits
• Supplies and food

There are other expenses that may apply to your situation. See Sole proprietorship and partnership or the Business and Professional income guide.

Forms and publications

• Business and Professional income guide (T4002)
• Using your Home for Day Care, pamphlet (P134)
• Form T2124, Statement of Business Activities