Introduction

Once architects and designers incorporate or begin operating independently, one of the first questions they ask is:

“What business expenses can I deduct?”

On Reddit and industry forums, this question often appears as:

• “Which software subscriptions can I write off?”
• “Is travel to client sites deductible?”
• “Can I deduct a new laptop or drawing tablet?”
• “How does GST/HST work on reimbursable project expenses?”
• “Is a home studio deductible?”

Architects and designers tend to invest heavily in tools, technology, continuing education, and travel. Many of these costs are deductible, but the CRA has rules on what qualifies as a business expense, how much can be claimed, and what documentation is required.

This guide explains common deductible expenses for architects and designers in Canada and how to track them properly for tax efficiency and compliance.

Key Takeaways

• A deductible expense must be reasonable and directly related to earning business income.
• Software, equipment, professional dues, education, travel, subcontracting, and marketing are commonly deductible.
• Home office deductions require specific criteria and must be calculated accurately.
• GST/HST rules apply differently depending on whether expenses are billed back to clients.
• Good receipt management and cloud accounting help avoid CRA issues.

What Makes an Expense Deductible?

According to the CRA, an expense can be deducted if it is:

“reasonable and incurred to earn income.”

(Source: CRA, Business Expenses)

For architects and designers, this generally includes materials, tools, software, and services needed to complete designs, prepare drawings, manage projects, or operate the practice.

Personal or mixed-use expenses must be prorated.

Common Deductible Expenses for Architects and Designers

1. Software and Digital Tools

Most architects rely on multiple subscriptions, many of which are deductible, including:

• AutoCAD, Revit, or ArchiCAD
• SketchUp, Rhino, Fusion 360
• Adobe Creative Cloud
• BIM platforms like Procore or Buildertrend
• QuickBooks Online or other accounting software

Since these tools are essential to providing services, they are considered eligible business expenses.

2. Computer Equipment and Devices

This category may include:

• laptops and workstations
• monitors and drawing tablets
• 3D printers used for modelling

These are capital assets and must be claimed through Capital Cost Allowance (CCA) rather than fully expensed.

(Source: CRA, Capital Cost Allowance Classes)

3. Professional Memberships and Licensing

Dues paid to approved professional bodies are generally deductible.

Examples:

• OAA (Ontario Association of Architects)
• ARIDO
• NCARB
• Continuing education fees required to maintain designation

(Source: CRA, Annual Membership Dues)

4. Office Space Costs

This can include:

• rent
• utilities
• cleaning
• insurance

If working from a home studio, deductions must follow CRA home office rules and may require prorating, such as by square footage.

(Source: CRA, Business Use of Home Expenses)

5. Travel and Site Visits

Architects frequently travel to:

• client consultations
• site inspection meetings
• material sourcing visits
• trade shows or supplier facilities

Eligible travel deductions may include:

• mileage or vehicle expenses
• flights and transportation
• meals (must follow 50 percent rule)
• accommodation

(Source: CRA, Vehicle and Travel Expenses)

6. Subcontractors and Outsourced Services

If outsourcing rendering, drafting, engineering support, or 3D modelling, the fees are deductible.

7. Marketing and Business Development

Eligible costs may include:

• website hosting
• branding and design services
• ads on platforms such as Houzz or social media
• professional photography of portfolios or projects

GST/HST: When Expenses Create Input Tax Credits

Architects who are GST/HST registered can claim input tax credits (ITCs) on eligible expenses.

According to the CRA, ITCs may be claimed when:

• GST/HST was paid
• the expense relates to a commercial activity
• proper records are maintained
  (Source: CRA, Input Tax Credits)

If an expense is billed back to the client as a reimbursable cost, GST/HST may also need to be charged when invoicing.

How to Track Expenses Without Losing Receipts

Architects often work on the move, making receipt management challenging.

Cloud accounting tools such as:

• QuickBooks Online
• Dext
• Expensify

make it easy to capture receipts immediately, store documentation digitally, and organize accounting by project.

CRA requires receipts for all business expense claims.

(Source: CRA, Keeping Records)

Common Deduction Mistakes Architects Should Avoid

• claiming personal software or furniture without prorating
• claiming full vehicle cost when used for both personal and business
• treating capital purchases as fully deductible expenses
• failing to track reimbursable project costs separately
• missing GST/HST collection on billable expenses

Accounting structure is as important as the deduction itself.

FAQ

Do all architects need to register for GST/HST?

Registration becomes mandatory once taxable revenue exceeds $30,000 in four consecutive quarters. Many register earlier.

Can I deduct home office costs if I also have a studio?

Only if the home workspace is used to earn income and meets CRA criteria.

Can I deduct a vehicle if I use it to visit sites?

Yes, but only the business-use percentage determined by mileage tracking.

Are conferences or architectural tours deductible?

Yes, if they relate to professional development or revenue-generating activities.

Do reimbursable expenses need GST/HST added?

Often yes, depending on whether the architect acts as principal or agent.

Build a Tax-Efficient Practice

Architects and designers often invest heavily in tools, travel, education, and technology. With proper tracking and categorization, many of these costs can be deducted to reduce taxable income while supporting business growth.

Rotaru CPA works with architecture and design firms to ensure compliance, streamline cloud accounting, and implement efficient expense and tax planning systems.

📍 Book a consultation to review your deductible expenses and ensure your accounting system supports tax efficiency and compliance.