I just got back from a family vacation at one of the happiest places – Disney World. This leads into a common question I receive from clients about what is and what is not deductible when it comes to travel expenses.
Since my vacation was a pure family vacation with no business related element to it, the trip is not deductible. However, if I had to handle a client emergency where I had to incur costs such as phone, WiFi or maybe postage, these specific expenses would be deductible.
If you need to attend a conference for professional development purposes, the conference, hotel and flight expenses are deductible. You may need to prove the purpose of the trip was business related so it is important to keep your conference materials. Meals are 50% deductible but entertainment can be a grey area. For example, if your conference is in Las Vegas and you decide to go to a show, CRA might rule that these expenses are personal in nature.
It is always important to document your travel for business purposes providing the reason. As well, always keep your receipts. You should consider using an application such as Receipt Bank to make your life easier.
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