Entrepreneurship & Small Business

Are classified ad purchases tax deductable?

  • Last Updated:
  • Mar 21st, 2022 3:55 pm
Sr. Member
Jul 2, 2013
792 posts

Are classified ad purchases tax deductable?

Sorry for the dumb question but I'm just curious.
If I buy a used or new tool or piece of equipment from someone on kijiji, can I expense it? I am obviously not paying HST so cant claim that. I would not be receiving a receipt either.
3 replies
Deal Fanatic
Jan 21, 2018
8082 posts
Purchase costs of items reasonably connected with the operation of your business are an allowable business expense that you can deduct from your business income, although some items are required to be listed as fixed assets and depreciated at the rate specified by the CRA rather than counted as a one-time expense.

Better be able to justify how it is required for your business if audited.
Deal Fanatic
Jul 26, 2007
6812 posts
Claim it through petty cash under advertising, maintenance or misc expense. Make handwritten receipt for $xx.xx, date and reason.
Deal Fanatic
Sep 23, 2007
5491 posts
If it's an equipment I don't imagine it being hard to justify as business related and reasonable.

CRA reserves the right to disallow any expenses where you can't generate documentation. So if you won't be receiving a receipt, maybe you can save any texts or emails indicating you agreed to buy this thing for X dollars. In an audit, CRA won't check every line you put into your books. Usually they select big transactions or categories they deem more sensitive to abuse. So how you record it could matter. Like if you are lazy and bought 5 equipment and enter them all at once as one line, that could come back to haunt you.


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