Canada’s most embarrassing tax questions, answered.

Tax time comes with a lot of confusion. Between gathering receipts, deciphering forms, and figuring out what qualifies as a legitimate deduction, it’s no wonder people get creative. Sometimes really creative.

H&R Block has been serving Canadians for more than 60 years, so by this point, we’ve heard it all. From someone trying to write off their entire wedding because they invited some business associates, to someone trying to claim Botox as a business expense, some Canadians really push the boundaries of “reasonable.” And while it’s good to ask questions – and sometimes the answer is yes! – many of the strangest tax deduction attempts fall firmly into the “nice try” category. Let’s look at a few examples to determine if they’ll pass the Canada Revenue Agency’s sniff test. 

1) My wedding was basically a networking event. Can I deduct it?

Claim attempted: Wedding expenses.

Verdict: Nice try, but no.

Unless you’re a professional wedding planner writing off client-related expenses, your own nuptials are strictly personal. You can’t write off the cost of flowers, venue, dress, DJ or the champagne toast, even if your boss gave the greatest speech.

2) My dog is my baby. Can I claim vet bills?

Claim attempted: Pet expenses.

Verdict: Unlikely, but maybe.

For most pet owners, pets aren’t considered dependents by the CRA, no matter how many Instagram followers they have.* However, service animals for medical needs, such as guide dogs, are eligible for a deduction, including their food, training, and vet bills. If your pet is part of a therapy plan approved by a medical processional, you might be able to claim it under medical expenses with proper documentation. But your average dog eating a sock whole? That’s on you.

*If you’re making revenue off Puppy’s Instagram page, though, that income needs to be reported to the CRA!

3) The strip club was for “client entertainment.”

Claim attempted: Adult entertainment as a business expense.

Verdict: Denied, possible trip to HR.

One small business owner tried to claim lap dances as “client entertainment,” though they “mostly came for the great buffet.” The CRA wouldn’t see this as a prudent client expense. If you take a client out for a meal at a restaurant, that might fly, but a VIP night at the club. Not likely.

4) Can I deduct my lingerie, glitter, and heels? I’m an exotic dancer.

Claim attempted: Costumes, shoes, and makeup for work.

Verdict: Yes, with a few caveats.

If you’re an exotic dancer or performer, your costumes including lingerie, platform heels, stage makeup, and glitter can be legitimate business expenses, as long as they’re used exclusively for work. The CRA recognizes that performance-related attire isn’t the same as everyday clothing.

That said, you’ll need to keep detailed records. If you’re buying outfits that double as your weekend wardrobe, the CRA may deny the claim. But if those sequin stilettos never leave the stage, you’re likely in the clear. You’ll need to complete a signed Declaration of Conditions of Employment (T2200). 

Pro tip: Treat your dancing like a business. Track your income, save your receipts, and be ready to show how those rhinestones are strictly professional. 

5) Claiming a divorce lawyer as a tax deduction.

Claim attempted: Legal fees from a divorce.

Verdict: Usually no, but partially yes in specific cases.

While the CRA doesn’t allow you to claim legal fees for general divorce proceedings, you can claim legal costs related to collecting support payments, like child or spousal support you’re entitled to receive. So, if you’re fighting to receive support, keep those receipts. But if you’re splitting furniture and arguing over custody of the blender, you’re on your own.

6) My home gym is for my health, can I claim it?

Claim attempted: Gym equipment for health.

Verdict: Not unless prescribed.

Your pandemic home gym set up probably helped your mental and physical health, but it won’t help your tax refund unless the equipment was prescribed by a medical practitioner for a specific medical condition. You’ll need a written prescription letter from the recognized medical practitioner that states the medical necessity of the specific equipment and the condition it’s intended to treat. The item must also be on the CRA’s list of eligible medical expenses. You don’t need to submit the prescription with your tax return, but you need to keep the receipt on file in case the CRA asks for it during a review or audit. 

7) My boyfriends’ son and his half-sister moved in with us. Can I claim the Canada Child Benefit for them even though I’m not related to them or married to my boyfriend?

Claim attempted: Canada Child Benefit (CCB).

Verdict: Yes.

Diverse and blended family situations are the new normal. Related or not, if you and your boyfriend are common-law and have primary care and responsibility or shared custody of the children, you can apply to receive the CCB by completing the Canada Child Benefits Application form (RC66). 

The takeaway from all of this is that it never hurts to ask, as you might be pleasantly surprised by the answer. When it comes to taxes, Canadians get creative, and sometimes even bold! While some of these strange deductions may seem like long shots, it’s always better to ask than to assume. In some cases, expenses you thought were no-gos might actually qualify. Just keep it reasonable, keep your receipts and don’t be afraid to speak with a Tax Expert whose seen it all.