Costs incurred for the use of leisure facilities (what is deductible or not!)
Fees for leisure facilities are not deductible. As an entrepreneur, you can transform these costs into travel expenses, provided they are justified.
In the meantime, below is the list of possible travel expenses. Here are some examples of information to provide. On the other hand, always validated with the tax authorities if there are interpretation bulletins.
The expense of purchasing equipment for sporting events
To be considered eligible:
- Demonstration in a factual manner
- Satisfy that the expenditure is intended to earn income
Expenses related to meals claimed outside a sales territory or while on vacation
These travel expenses are generally not considered deductible . However, they are not hired for the purpose of earning income. If you are making the expense to earn income, you can include:
- transportation costs
- accommodation costs
- meal costs
Meals on the go
Remember that the 50% limit applies to meal costs. This limit comes into effect when the meal expense is considered deductible for business expenses.
Did you know that there is a special case that is important to keep in mind for your travel expenses? If you must undertake a trip outside of Canada for which you have received a formal contract .
You will have to invoice GST and QST on costs incurred outside Canada to your client.
This may seem strange. The contract is more important than the invoice. It is the contract that is taxable!
If this does not seem clear to you or if you have any questions, do not hesitate to contact us. It would be our pleasure to help you.