CRA Line 9270: What Can You Claim on T2125 Other Expenses?
When completing Form T2125 (Statement of Business or Professional Activities), you are confronted with 22 specific expense categories in Part 4. While items like rent or travel have dedicated spots, modern digital businesses run on expenses that do not easily fit. This is where Line 9270 (Other Expenses) becomes your most critical catch-all tool.
The Golden Rule of Line 9270
Line 9270 is not a magic drawer to hide personal expenses. Every deduction claimed here must be ordinary, necessary, and backed by a receipt. When filing, you must provide a brief text description of what these other expenses are, so clarity is essential to prevent CRA reviews.
1. Software & SaaS Subscriptions
In the modern economy, software is often a sole proprietor's second-largest expense behind rent. Since there is no dedicated “Software” box on Form T2125, all recurring monthly or annual cloud service fees belong on Line 9270.
Eligible examples include:
- Bookkeeping and Accounting: Your NorthOS subscription.
- Office Suite & Communication: Google Workspace, Microsoft 365, Slack, and Zoom.
- Creative & Design: Adobe Creative Cloud, Figma, Canva, and stock asset libraries.
- Hosting & E-commerce: Shopify, Squarespace, Webflow, and cloud databases.
2. Payment Processing and Marketplace Fees Do Not Belong Here
If you collect payments online, merchant processors and marketplaces take a cut of your revenue. When bookkeeping, you should record your gross income (the full amount the customer paid) as revenue, and deduct the fee as an expense.
These fees belong on Line 8871 (Management and administration fees), not Line 9270. The CRA guide T4002describes Line 8871 as covering “management and administration fees including bank charges incurred to run your business” — the only Part 4 line that names a general service charge for running the business. That covers:
- Stripe, PayPal, Square, or Shopify Payments processing fees.
- Etsy transaction, listing, and payment processing cuts.
- eBay final value fees.
- Amazon referral and fulfillment fees.
A platform plan or subscriptionis a different expense from a platform's cut of a sale. Shopify's monthly plan, an Etsy Plus subscription, or an eBay Store subscription is a recurring software cost — those stay on Line 9270 alongside your other SaaS subscriptions.
Common Bookkeeping Trap
Do not put transaction processing or marketplace fees on Line 8710 (Interest and Bank Charges) either. T4002's Line 8710 text covers interest on borrowed money and the fees tied to a loan — “interest on money borrowed for business purposes” and “fees, penalties, or bonuses paid for a loan” — not a fee a processor or marketplace takes on a sale. A loan-application or financing fee genuinely belongs on 8710; a Stripe or Etsy cut belongs on 8871.
3. Web Assets: Domains and SSL Certificates
While website hosting and marketing campaign costs can be claimed under Line 8521 (Advertising and Promotion), minor digital infrastructure fees are usually categorized on Line 9270 to keep marketing budgets clean.
This includes your annual domain registrations (from Namecheap, GoDaddy, Google Domains), SSL security certificates, and premium DNS services.
4. Continuing Education and Skills Maintenance
As a freelancer or consultant, you must stay competitive. The CRA allows you to deduct educational expenses, but only if they are directly related to maintaining or improving the skills required for your current business operations.
Eligible deductions for Line 9270:
- Technical webinars, workshops, or bootcamps directly related to your work.
- Business and marketing ebooks, journals, or trade publications.
- Online courses (from Udemy, Coursera, or industry-specific educators) that teach you how to use a tool or system in your current business.
What you cannot claim: You cannot deduct tuition for a university or college degree, or any course taken to enter a brand-new career path. Those are personal tuition expenses that must be claimed as personal tax credits, not business deductions.
5. What Else Fits Here?
A few other common items that sole proprietors frequently categorize under Line 9270:
- PO Box Rentals: If you rent a mailing address to protect your personal home address.
- Coworking Day Passes: If you occasionally pay for hot desking at a shared office space.
- Minor Subscriptions: Stock photo access, premium fonts, or fonts licensed for client work.
How NorthOS Handles Line 9270
In NorthOS, you categorize your digital subscriptions to Line 9270 and your payment-processing or marketplace fees to Line 8871, and the app rolls each into the right spot on your T2125 export, so you are not guessing at year end.
Disclaimer: This article is for informational purposes only and does not constitute tax advice. CRA rules can change — always verify with the CRA or a qualified tax professional.