Accountant fees, legal costs, and tax preparation are all deductible on Line 8860.
Know exactly what belongs on Line 8860 — and what the CRA says doesn't qualify.
Special CRA rules and percentage limits that apply to professional fees (legal & accounting).
If you pay legal fees to acquire a capital asset (e.g., a building), those fees are added to the cost of the asset and depreciated through CCA, not deducted as a current expense.
See how different professionals use Line 8860 deductions in practice.
Paid an accountant for annual T1/T2125 tax preparation and quarterly bookkeeping support.
$1,200
$1,200 (100%)
Consulted a lawyer about a commercial lease agreement for a new salon location.
$500
$500 (100%)
These errors on Line 8860 can trigger a CRA review — here's how to get it right.
Not deducting tax software subscriptions
Tax preparation software (e.g., TurboTax, Wealthsimple Tax Pro) used for your business return is a deductible professional fee on Line 8860.
Putting platform fees here instead of Line 8871
Platform fees (Uber, DoorDash, Shopify) are operational/admin costs that belong on Line 8871 (Management & Administration Fees), not Line 8860.
These categories are often mixed up with Professional Fees (Legal & Accounting). Here's the difference.
See how ScanForTax processes a typical professional fees expense.
Smith & Associates CPA
2025-04-05
Ontario
ScanForTax identifies this CPA invoice and auto-categorizes it under Professional Fees (Line 8860). The $110.50 HST is flagged as fully recoverable through your ITC claim.
Profession-specific guides that frequently use Professional Fees deductions.
See how tax recovery works for professional fees expenses in each province.
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