Meals and Entertainment
- Maximum amount that can be claimed is 50% of the actual cost of food, beverages and entertainment and incurred.
- The 50% limit also applies to gift certificates for food and beverages and tickets to sporting events and concerts purchased for patients or staff.
- 100% of expenses can be claimed if the event is available to all staff members. The employer is limited to six events per year.
- Meals and beverages served (and entertainment provided) while traveling on an airplane, train or bus are not subject to the 50% limitation if the cost is included in the travel fee. Food and beverages provided while traveling by boat or ferry are subject to the 50% limitation.
Club Fees and Dues
- Green fees or membership fees in a golf club are not deductible. There is an exception for expenses incurred for food and beverages at a restaurant, conference room, etc. of a golf club if they are incurred for genuine business purposes and the expenses are not incurred in conjunction with a game of golf or other recreational activity at the club. Such amounts are subject to the 50% meals and entertainment limit discussed above.
Home Office
- You can deduct expenses for the business use of a work space in your home, as long as you meet one of these conditions:
- it is your principal place of business; or
- you use the space only to earn your business income, and you use it on a regular and ongoing basis to meet your clients, customers, or patients.
- You can deduct a part of your maintenance costs such as heating, home insurance, electricity, and cleaning materials. You can also deduct a part of your property taxes, mortgage interest, and capital cost allowance. To calculate the part you can deduct (area used for business purposes only), use a reasonable basis such as the area of the work space divided by the total area of your home.
Interest on Student Loans
- Interest is deductible on loans received under
- the Canada Student Loans Act;
- the Canada Student Financial Assistance Act; or
- a similar provincial or territorial government laws for post-secondary education.
- Interest is not deductible on
- a personal loan or a line of credit;
- a student loan that has been combined with another kind of loan; or
- a student loan received from another country.
- Undeducted amounts may be carried forward five years.
Uniforms and cleaning
- Cost of purchasing and cleaning special clothing, designed for protection from the particular hazards of the occupation, are fully deductible.
- The cost of suits or other street clothing that can be used for both business and personal activities is considered to be a non-deductible personal or living expense by the CRA.
Practice search
- Cost of travel, lodging, and food associated with researching the new position or practice location are deductible.
- Costs incurred for family members are non-deductible.
Locum assignment
- You can deduct travel expenses you incur to earn professional income. Travel expenses include:
-
- public transportation fares;
- hotel accommodations; and
- meals, however, the 50% limit applies to the cost of meals, beverages, and entertainment when you travel.
- Costs incurred for family members are non-deductible
