One of the most common questions business owners ask in 2026 is:
“Can I deduct my meals, internet, and my car in my business?”
The answer is: yes — but only the business-use portion, and only if it’s properly documented.
These are classic examples of quasi-personal expenses, meaning they often have both personal and business use. The CRA allows deductions, but only when the allocation is reasonable and supportable.
Can I Deduct My Car?
Vehicle expenses are deductible when your car is used to earn business income.
Common deductible vehicle costs include:
- Fuel
- Insurance
- Maintenance and repairs
- Lease payments or loan interest
- Parking for client meetings
- Business-related tolls
The key is tracking business kilometres vs total kilometres.
If your car is used 65% for business, then 65% of eligible vehicle expenses may be deductible.
A mileage log remains one of the most important CRA support documents.
Can I Deduct Internet and My Cell Phone?
Yes — but only the business-use percentage.
This often includes:
- Home internet
- Mobile phone plans
- Data usage
- Additional work lines
For example:
If your phone is used 70% for work, then 70% of the bill may be deductible.
The same principle applies to home internet if it supports client work, remote meetings, cloud systems, or operational communication.
What About Meals?
Meals are one of the most misunderstood business deductions.
The CRA generally allows 50% of meal expenses when they are:
- Directly related to earning income
- Connected to a business meeting
- Reasonable in amount
- Properly receipted
Client lunches, networking meetings, and travel meals often qualify.
Daily personal lunches usually do not.
What the CRA Actually Looks For in 2026
The CRA focuses on three questions:
1) Was there a real business purpose?
The expense must help generate income.
2) Is the allocation reasonable?
You need a supportable split between personal and business use.
3) Do you have records?
Receipts, mileage logs, and written explanations matter.
Without documentation, even legitimate deductions can be denied.
Final Thoughts
Meals, internet, and vehicle expenses can absolutely be deductible in Canada.
The key is not whether the expense feels business-related — it’s whether you can justify the percentage and support it if the CRA asks.
In 2026, clean documentation is still your best audit protection.
Need Help Reviewing Your Business Expenses?
Greg Cowan CPA helps Ontario business owners maximize deductions while staying fully CRA-compliant.