Are professional development courses deductible as a business expense?

Training and professional development costs are generally deductible as business expenses if the education or course maintains or improves skills required in your current business. The CRA distinguishes between training that is directly related to your existing work (deductible) and education that qualifies you for a new career or profession (generally not deductible as a business expense, though education tax credits may apply instead).

For example, if you are a freelance graphic designer and take a course on updated design software, that cost is a deductible business expense. But if you are a graphic designer taking law school courses, those would not be deductible because they are training for an entirely different profession.

The expense also needs to be reasonable. Tuition fees, course materials, required texts, and registration fees are typically included. Travel to attend in-person training can also be deductible if the travel was necessary and primarily for business. Keeping receipts and a brief note about the business purpose of the course is good practice.