TAX QUESTIONS? YOU ASK LAH!
Your weekly dose of tax knowledge - become tax savvy in just 2 minutes!
Q: I am a sole proprietor with no employees, only subcontractors. They submit meal receipts incurred while working on my clients' projects for reimbursement. Can I claim these expenses as a tax deduction?
A: Yes, but only 50% is tax deductible. As subcontractors are not your employees but more like suppliers, meal expenses reimbursed to them are generally treated as entertainment to supplier, and therefore only 50% is tax deductible.
Wishing you plentiful tax savings!
Zen Chow
YYC Tax Guru
