Hey everyone! I’m going to start off 2018 by sharing a bookkeeping, accounting or tax tip of the day – or “BATT”!
Today’s discussion is around meals and entertainment.
In Canada, meals and entertainment are generally deductible for tax purposes, but usually only for 50% of the amount. It’s a good idea to have a separate account for this so you can easily break it out at tax time. It’s also very important that you write down who you were with and why it was a business meeting on your bills should you be audited.
As with everything in Canadian tax, there are always exceptions to every rule so please contact a professional to help with your specific situation.