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