Many real estate investors spend thousands of dollars on education—seminars, coaching, mastermind groups, and more. But can those costs be deducted? In this video, I break down what qualifies and what doesn’t when it comes to deducting real estate education expenses. While these deductions can be valuable, they can also raise CRA red flags if not handled properly.
Video Transcript: Claiming moving expenses in Canada
Real estate investors often incur costs at various meet-up groups or organizations where they’re receiving some education. These costs are not normally provided by what I’ll call universities, colleges, or organizations that can provide a standard tuition credit, for example, or an education credit.
It doesn’t mean they’re not deductible where they’re for the purpose of earning income. If they’re more capital in nature—in other words, you’re learning more to acquire a property or learning a new skill set—Revenue Canada has more reservations, although there’s still some things we can do.
Where more of the cost, though, can be said to be relating to property management, improving existing skill sets, or learning how to do a variety of activity as compared to the actual acquisition of the properties, deductions are frequently available.
While we generally speaking prefer to do this through a corporation, it doesn’t mean we can’t do it on the personal side. Talk with your advisor. We have an assortment of choices that are available. They can be a red flag. They are frequently audited. But properly done, you’re a-OK.
I’m George Dube, saving the world from tax, one bow tie at a time®.
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Resources
For additional resources related to how to maximize tax deductions, see:
- 2025 tax season tips: How to save more this year
- Is my REIN membership tax deductible?
- Is my lunch tax deductible?
More questions?
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Remember – circumstances are unique! This information is summary in nature. Seek out advice from your tax advisor about your specific situation.
