When it comes to claiming deductions for scientific research expenses, the answer really depends on how those expenses relate to your income-earning activities.

Here’s the lowdown:

• If it’s Business-Related:
  When you’re running a business or are engaged in a profession and you spend money on scientific research to help improve or innovate your business, then—provided you can show that the expense was incurred “wholly and exclusively” for business—the expense may be deductible as a business expense. This is in line with general business expenditure provisions in the Income Tax Act.

• If it’s Personal:
  If you’re doing scientific research out of personal interest or for non-business reasons, unfortunately, that cost isn’t deductible. The tax law only allows deductions for expenses directly related to earning taxable income.

• Alternatively, Support Research Through Donations:
  Even if your own research isn’t deductible because it’s not tied to your business, you can still support scientific research by donating to approved research institutions. In that case, the donation itself may qualify for a deduction under the provisions for charitable contributions.

Bottom Line:
An individual can claim a deduction for scientific research expenses only if those expenses are directly linked to their business or professional activities. Personal research expenses are not deductible. However, if you donate to an approved research institution, you might enjoy a tax benefit for that contribution.