Food, Beverages and Entertainment

Section 67.1 restricts a deduction for food, beverages, and entertainment (including the amounts for food and beverages while attending a conference, convention, or similar function) to the lesser of:

  • 50% of the amount paid or payable; or
  • A reasonable amount.

The rules provide exceptions for:

  • Airlines, restaurants, and hotels that offer this service to their clients;
  • Meals or entertainment intended to benefit a charity;
  • The cost of meals and entertainment included as a taxable benefit to the employee;
  • Meals and entertainment provided for the benefit of all employees; and
  • Child care and moving expenses that qualify for a deduction under section 62 or 63 of the Act.



CRA accepts the following ongoing home expenses:

  • Rent;
  • Mortgage interest;
  • Property taxes, insurance;
  • Heat, light, water, telephone;
  • Cleaning and maintenance;
  • Yard maintenance; and
  • Minor repairs and supplies.
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