taxable deductions

[rook]

I don't want to pay one more penny than I need to, and I'm no expert, but I can't think of a situation where you could claim groceries. Maybe I'm wrong or missing something?

[farmers_son]

What if an employee was working for room and board? I know students will travel and work on farms for room and board. It would seem possible that a deduction for groceries could be claimed as long as the student/employee was issued a T4 showing a taxable benefit. Quite possibly the student may not then file a return as they would not meet the threshold to file. I remember when I was much much younger that some of our neighbours did this with their hired men only in those days no T4 would have been issued. But it was done and quite openly. Frankly, today I would not touch it with a ten foot pole. I am very conservative or put another way I am chicken. But I could see someone considering this if quite a few students were employed. The grocery bill would add up. Done properly it should be a legitimate expense.

Obviously restaurants would deduct their groceries as an expense.

Some info from Revenue Canada…According to:
http://www.cra-arc.gc.ca/nwsrm/txtps/2010/tt100219-eng.html

“Tax tip
Northern residents deductions
Did you know...
…that if you are a resident of a northern region, you may be able to get tax relief based on your travel and living costs? That’s right.”

See line 255 on your tax return.

For a list of designated and intermediate regions see:

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns248-260/255/zns-eng.html

Alas my small community is not included. But farming communities such as La Crete are. Falher qualifies as an intermediate region.

So if you live far enough north in the Great White North you can quite properly deduct living expenses from your income tax. And travel for vacations appear to be OK for deductions too.

[hobbyfrmr]

I like to strategically plan vacations. There are commodity shows, food shows, machinery shows, livestock shows etc. all around the world. ie. There is a Ritchie Brothers machinery auction in Las Vegas NV this month. This week there is a big construction trade show in Las Vegas. Caterpillar is having "oil analysis" seminar. This will help predict wear in CAT engines. If you have a semi with CAT engine, or a TR70 with a CAT engine, this is part of your business. Obviously you must prove attendance. I think there is a big farm machinery show in Orlando, Florida. Your personal expenses qualify, I dont think the CRA is going to do a head count in the room for the hotel expense, maybe drag a few children along. There is Biofach in Germany in case you are interested in European farming. Cattle shows in Texas. There was a 55 yr old neighbor who would sell a steer (pre BSE)to Texan clients for their children to show like 4H. He would then spend time there teaching those kids grooming and showing. I do not think it unreasonable to expense travel for my farm if I am going to learn from it. I personally know input suppliers take their managers fly-in fishing. They have a real meeting then a few days fishing on the bosses dime. I suppose the boss could have a pile of air miles if he is buying multi millions of dollars of seed/fert and chem to retail. I better check into that one.