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.