buksoPrepaid expenses paid in advance insurance
Not tax advice. General bookkeeping information only, checked against the official sources linked below (Canada Revenue Agency, IRS, provincial governments and Justice Laws) on Oct 17, 2026. Rules change; check with your accountant before you file.
Canada
A prepaid expense (for example insurance or rent paid for a later period) is deducted in the year you get the benefit, not the year you pay. If part of a payment covers next year, that part is deducted next year.
Official source: canada.ca