From Stripe fees to business loan interest, every dollar of banking costs you incur for your business is deductible — with a few important caps to know.
Know exactly what belongs on Line 8710 — and what the CRA says doesn't qualify.
Special CRA rules and percentage limits that apply to interest & bank charges.
Interest on loans for passenger vehicles is capped at $350 per month (for 2025 loans). This limit applies to the interest portion only — principal repayments are never deductible.
Regulation 7307(1)Interest on money borrowed to purchase vacant land is limited to the amount of income the land generates. Any excess interest can be added to the cost of the land.
Fees, premiums, and other costs to arrange financing for loans of $500 or more are deductible at 20% per year over 5 years. If the loan is repaid early, the remaining unamortized balance can be deducted in that year.
If you have a mortgage on a business property, only the interest portion of each payment is deductible. The principal repayment is not a deductible expense.
| Rule | Limit |
|---|---|
| Vehicle loan interest | $350/month max |
| Financing fees | 20%/year over 5 years |
See how different professionals use Line 8710 deductions in practice.
Paid Stripe 2.9% + $0.30 per transaction on all online sales throughout the year.
$4,200
$4,200 (100%)
Paid the annual fee and carried a balance on a business credit card used for software subscriptions and equipment.
$380
$380 (100%)
Paid $420/month in interest on a vehicle loan for a car used 90% for business. Capped at $350/month.
$5,040 (actual) → $4,200 (capped at $350/mo × 12)
$4,200 (at cap)
These errors on Line 8710 can trigger a CRA review — here's how to get it right.
Forgetting to deduct merchant processing fees (Stripe, Square, PayPal)
Payment processing fees are a legitimate business expense. Review your monthly statements from Stripe, Square, PayPal, or Shopify and claim all processing fees on Line 8710.
Claiming principal repayments as interest
Only the interest portion of loan payments is deductible. The principal repayment reduces your debt but is not an expense. Review your loan statements to separate interest from principal.
Not tracking credit card interest on business purchases separately
If you use the same credit card for personal and business purchases, you must track and claim only the interest attributable to business charges. Consider using a dedicated business credit card.
These categories are often mixed up with Interest & Bank Charges. Here's the difference.
See how ScanForTax processes a typical interest expense.
Stripe Inc.
2025-03-31
Ontario
ScanForTax imports your Stripe fee statements and categorizes them under Interest and Bank Charges (Line 8710). Payment processing fees have no GST/HST component, so there are no ITCs to claim — but the full amount is deductible.
Profession-specific guides that frequently use Interest deductions.
See how tax recovery works for interest expenses in each province.
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