From business cards to Google Ads, advertising costs are fully deductible on Line 8521 — as long as you follow the CRA's Canadian content rules.
Know exactly what belongs on Line 8521 — and what the CRA says doesn't qualify.
Special CRA rules and percentage limits that apply to advertising.
Advertising in Canadian periodicals is 100% deductible if the publication has 80% or more original editorial content. If the publication has less than 80% original editorial content, only 50% of the advertising cost is deductible.
Section 19.01 of the Income Tax ActAdvertising directed at the Canadian market through a foreign broadcaster is NOT deductible at all. This rule exists to support Canadian media outlets.
Section 19.1 of the Income Tax ActWebsite development costs may be treated as a current expense (fully deductible in the year incurred) or as a capital expenditure under CCA Class 12 for software. Minor updates and maintenance are current expenses; a major site build may need to be capitalized.
| Rule | Limit |
|---|---|
| Advertising in periodicals with less than 80% original editorial content | 50% |
See how different professionals use Line 8521 deductions in practice.
Ran a targeted Facebook ad campaign to promote spring property listings in the GTA.
$2,400
$2,400 (100%)
Paid for a portfolio website redesign and annual hosting to showcase work and attract new clients.
$1,800
$1,800 (100%)
Ordered 2,000 printed flyers from a local print shop to promote the grand opening of a new salon.
$350
$350 (100%)
These errors on Line 8521 can trigger a CRA review — here's how to get it right.
Claiming personal social media costs as business advertising
Only the portion of social media spending directly related to promoting your business is deductible. Personal Instagram boosts or Facebook posts about non-business topics do not qualify.
Not knowing the Canadian content rule for periodicals
Check whether the publication has 80% or more original editorial content before claiming 100%. If it has less, only 50% of the ad cost is deductible.
Capitalizing website costs when they should be expensed (or vice versa)
Minor website updates and hosting are current expenses. A major website redesign or custom application may need to be capitalized under CCA Class 12 and depreciated over time.
These categories are often mixed up with Advertising. Here's the difference.
Website and software costs can go on either line. Use Line 8521 for advertising-focused web costs (ads, SEO, promotional sites), and Line 9270 for general software and tools that are not primarily advertising.
If you hire a marketing agency, their management fees could go on Line 8871. However, the actual ad spend they manage (Google Ads, print costs) belongs on Line 8521.
See how ScanForTax processes a typical advertising expense.
Staples Print Centre
2025-03-15
Ontario
ScanForTax identifies this as a Staples Print Centre purchase and auto-categorizes it under Advertising (Line 8521). The $31.20 HST is flagged as fully recoverable through your ITC claim.
Profession-specific guides that frequently use Advertising deductions.
See how tax recovery works for advertising expenses in each province.
Start scanning now — your first 15 scans are free, no credit card required.
$250,000+ in receipts already processed by Canadian businesses