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We all know we can claim meals and travel...what you don't know! Lisa Patrick

In an audit the most examined claims are travel and meals.  You must ensure you document your intent for business purposes.  Things you need to do to ensure your deduction is safe:

1. Full name or place
2. Reason for the visit ( We suggest attaching paper work copy of meeting if expense over $500)

When documenting, in our experience the first intent of a business purpose must be evident when the purpose is shared between business and personal. 
VERY IMPORTANT: Keep your personal relationship to the person or place out of the details.  It was a business purpose, that is all that should be indicated on the documentation.

In a recent tax court case, the judge was opening perturbed at the fact that the meal receipts indicated: "lunch with my daughter about the website." This description indicated to him the purpose was personal first and business second. 

We suggest that the description of the business luncheon should read: 'Lunch with our website designer - Penny Joe.... Discussion: Graphics Improvements Needed'

Darlene Lafond R.P.A., C.P.C.
 


Out of Town Travel and What CRA Court Says Lisa Patrick

Reasonable Expectation of Profit.

An audit we recently represented at Tax Court of Canada focused on the claim of business meetings with the government scrutinizing the vehicle trip log and some out of town travel.

The judge chose to disallow some deductions even though the client had provided all the receipts.

The final conclusion may have been more favorable if the kilometer logs & travel itinerary of the meetings actually would have had the following information present:

  1. actual street address of meeting location
  2. job description or job title and complete name of all attending meeting
  3. brief summary of discussion must have specific details not just promotional meeting.

Travelling Lots for Business? Earn Income and Tax Deduct at the Same Time! Lisa Patrick

Today we are all about the Economy and cutting back.  We have to travel for business !

How about sitting in the same seat in the airplane and sleeping in the same hotel but save your company the commissions and possibly earn income at the same time maintenance free.!
Sounds to good to be true ?… It is true.   A new tax Strategy and Income Earner.

Contact us and we can show you how.

Lisa Patrick
CEO


Travelling Lots for Business? Earn Income and Tax Deduct at the Same Time! Lisa Patrick

Today we are all about the Economy and cutting back.  We have to travel for business !

How about sitting in the same seat in the airplane and sleeping in the same hotel but save your company the commissions and possibly earn income at the same time maintenance free.!
Sounds to good to be true ?… It is true.   A new tax Strategy and Income Earner.

Contact us and we can show you how.

Lisa Patrick
CEO


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