Keep the complete original receipt, identify the business items, document how you calculated the business portion and record only that portion in the Business. Do not crop away personal lines or alter the source document just to make it look business-only.

Preserve the source document

Save a readable image or PDF of the entire receipt. It should show the supplier, date, line items, taxes and total. The unaltered receipt lets a reviewer understand how your calculation relates to the original purchase.

Because the receipt may contain personal information, restrict access to authorized people and avoid including unrelated sensitive details in notes.

Mark the business portion separately

Create a calculation note that lists:

• each business item;
• its price;
• any discount allocated to it;
• the method used to allocate tax or shared charges; and
• the resulting business amount.

For example, if delivery applies to the whole order, explain how you divided it rather than silently assigning all delivery cost to the Business. Keep the calculation with the expense.

Record payment and owner repayment correctly

If the owner paid the mixed receipt personally, the Business record should include only the business portion. Track any amount owed back to the owner separately. A later repayment is not a second expense.

The owner-repayment workflow keeps the original expense distinct from money returned to the owner.

If the Business paid the whole receipt, do not treat the personal portion as a business expense. Ask your accountant how the personal amount should be recorded for your entity and circumstances.

Avoid three common errors

1. Recording the full total: this mixes personal and business spending.

2. Editing the receipt image: this removes the original evidence.

3. Creating one expense per source: the receipt and payment transaction support the same purchase; they are not separate costs.

Frequently asked questions

Can I highlight the business lines?

Keep the original unchanged. You may add a separate annotated copy if useful, clearly labelled as an annotation.

How should tax be divided?

Base the record on the source amounts and a documented allocation. Eligibility for GST/HST input tax credits depends on specific rules; consult CRA guidance or a qualified professional.

What if the receipt does not itemize the purchase?

Ask the supplier for an itemized receipt. Preserve the payment evidence and add a factual note while the request is unresolved.

Official guidance

The CRA says business expense claims must be supported by invoices, receipts or other vouchers and defines business expenses by their business-income purpose. Review the business expenses overview and GST/HST record requirements.

This article is about organizing evidence. It is not a decision about deductibility, tax allocation or shareholder treatment.