Can I deduct my phone and internet costs as a self-employed Canadian?

Yes — the business-use portion of your phone and internet bills is deductible as a business expense on Form T2125. The key is that you can only claim the proportion that relates to business use, not personal use. **Calculating business-use percentage:** Estimate a reasonable percentage based on your actual business use. For example: - Mobile phone: 60% business, 40% personal = claim 60% of the monthly bill - Home internet: 30% business, 70% personal = claim 30% of monthly costs The CRA may question extreme percentages (e.g., 100% for a single personal-use device). Document your reasoning. **Best practice:** - If possible, have a dedicated business phone line or SIM — then 100% is deductible - Keep your phone bills as supporting documents - Note your business use percentage and how you calculated it **Capital costs:** The cost of a smartphone or device itself is a capital expense claimed via CCA (typically Class 8 at 20% per year, or Class 12 at 100% if under C$500).

  • Only the business-use proportion of phone/internet is deductible
  • Document your business-use percentage and keep bills as evidence
  • Dedicated business phone line: 100% deductible
  • Device purchase claimed via CCA (Class 8 or Class 12 for items under C$500)
  • 100% claims on personal devices may attract CRA scrutiny

Related Questions

  • What business expenses can self-employed Canadians deduct?
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