Another question we often get asked is – What expenses can I deduct?
This subject could cover a lot of territory so we are doing a series of quick blogs to cover the more common items. This is the third blog.
As a general rule a business can claim and deduct any expenses incurred to run the business.
But, there are a few that might not be obvious:
To be claimable, meals must have been incurred for a business purpose. That usually means you have to have been entertaining someone – for example, a customer/prospective customer, a supplier/prospective supplier, etc. To prevent arguments with CRA always write the name of the person you entertained and what you talked about on the back of the receipt.
Buying yourself a lunch or a dinner after working late does not qualify.
On the other hand, if you are traveling away from your home town overnight you may claim your own meals. It is also permissible to claim meals for your whole staff if everyone is invited (eg a Christmas party).
If you are wondering about how this applies to your situation give us a call and we will be glad to clarify things for you.