What you pay other people to run and administer the business is deductible. On Form T2125, it goes on line 8871, Management and administration fees.
What belongs here
- management and administration fees you incurred to operate your business
- bank charges, including those for processing payments
That second point is broader than it looks. A payment processor's or platform's statement of the fees it deducted before paying you is a charge for processing payments, so it fits the CRA's wording here.
What does not belong here
The CRA names three amounts specifically, each with its own line on Form T2125:
- employees' salaries, wages and benefits, including the employer's contributions — line 9060
- property taxes — line 9180
- rent paid — line 8910
What to keep
Keep a record of all your income and expenses, with the documents behind them. Management fees usually arrive as an invoice; bank and processing charges usually arrive as a statement line rather than a receipt, so the monthly statement is the document to keep.
Where a platform pays you a net amount, keep the statement that shows the gross and the fee. It supports both sides: the income you report and the fee you deduct.
Don't send them in with your return. Keep them in case the Canada Revenue Agency (CRA) asks to see them. Business records follow the same six-year retention rule as your personal documents.
Official CRA sources
Source: Canada Revenue Agency (canada.ca). Not tax advice.