Can you claim Facebook ads for affiliate income in Canada?

Yes — Facebook/Meta ads you pay to earn affiliate income in Canada are often deductible business expenses, as long as they were incurred to earn income and are reasonable, supported by records, and claimed correctly on your return.

A few important points:

• If you are a sole proprietor, affiliate income and related expenses are commonly reported as business income and expenses on Form T2125 with your T1 return.
• If you operate through a corporation, the reporting is different.
• Advertising is usually an eligible expense category, and Meta ads commonly fall under that if they were used for the business.
• Keep good records: Meta invoices, payment confirmation, campaign details, and a clear explanation of the business purpose. A simple credit-card statement line item alone is usually not enough if CRA asks for support.
• GST/HST treatment depends on your situation. If you are GST/HST-registered, you may be able to claim input tax credits on eligible GST/HST paid. If you are not registered, you generally claim the total advertising cost as an expense, subject to the usual rules.
• If the ads contribute to a loss, that does not mean the loss is automatically deductible against other income in every case. The loss treatment depends on whether you are carrying on a real business activity and whether the expenses are otherwise deductible under the tax rules.

So the short answer is: usually yes, but only if the ads were genuinely for earning affiliate business income and you can substantiate the claim. Because tax treatment can vary by structure and GST/HST status, it is wise to check current CRA guidance or ask a Canadian accountant for your exact situation.