Many Canadians pay for investment advice, portfolio management, and accounting services — but not everyone knows whether these fees can reduce their taxes.

At Toro Accounting, one of the most common questions we receive is:

“Can I claim my investment advisor or accountant fees as a tax credit?”

The answer depends on the type of expense.

1️⃣ Is It a Tax Credit or a Deduction?

In most cases, these expenses are NOT tax credits — they are tax deductions.

Understanding the difference is important:

• ✅ Tax Credit: Reduces the tax you owe directly.
• ✅ Tax Deduction: Reduces your taxable income.

Investment advisory and certain accounting fees are typically claimed as carrying charges (deductions) on your tax return.

2️⃣ Investment Advisory Fees

According to the Canada Revenue Agency (CRA), you may deduct fees paid to:

✔ Manage or administer taxable investment accounts
✔ Provide investment advice for generating income
✔ Manage stocks, bonds, ETFs, and non-registered mutual funds

CRA guidance:
👉  Line 22100 – Carrying charges, interest expenses and other expenses - Canada.ca 

⚠️ Important Limitation

You cannot deduct fees related to registered accounts such as:

• RRSP
• TFSA
• RESP

Why? Because income earned inside these accounts already receives preferential tax treatment.

3️⃣ Accounting Fees — Are They Deductible?

It depends on your situation.

👤 For Individuals (Employees or Investors)

You may deduct accounting fees if they relate to:

✔ Investment income reporting
✔ Tax advice regarding income-producing investments

These are typically claimed as carrying charges on your personal return.

CRA reference:
👉  ARCHIVED - Fees Paid to Investment Counsel - Canada.ca 

👨‍💼 For Self-Employed Individuals & Corporations

If you operate a business:

✔ Accounting fees are generally 100% deductible
✔ Includes financial statement preparation
✔ Tax planning
✔ GST/HST filings
✔ Payroll services
✔ Corporate tax returns

These are treated as normal operating expenses.

4️⃣ How Much Could You Save?

Example:

If you paid:

• $2,000 in deductible investment advisory fees
• Your marginal tax rate is 40%

You could save approximately:
👉 $800 in taxes

Your actual savings depend on your tax bracket.

5️⃣ Common Mistakes to Avoid

❌ Confusing deductions with tax credits
❌ Deducting fees related to RRSP or TFSA accounts
❌ Not keeping invoices
❌ Mixing personal and corporate accounting expenses

Proper documentation is key in case of a CRA review.

6️⃣ Strategic Tax Planning Matters

With proper planning, you can:

✔ Structure investment accounts efficiently
✔ Separate personal and corporate advisory costs
✔ Optimize deductible expenses
✔ Reduce overall tax exposure

The way fees are structured can significantly impact your after-tax return.

💼 How Toro Accounting Can Help

At Toro Accounting, we:

• Review your income structure
• Analyze your investment accounts
• Ensure proper classification of expenses
• Help you maximize legitimate deductions
• Reduce CRA reassessment risks

Smart tax strategy isn’t just about filing — it’s about planning.

📞 Book a Consultation

If you’re paying investment or accounting fees and want to ensure you’re optimizing your tax position:

👉 Book your appointment here