Meals and Entertainment
- Expenses that are deductible in your business may include meals and entertainment, such as the cost of taking a client to a restaurant and a sporting event. These expenses, however, are only partially deductible (50 % in Canada)
allowance for expenses, entertainment allowance
Related Terms and Acronyms
- Business Interest Expense — Definition,
- Interest acquired in business operations can be deducted as a business expense.
- Expensing — Definition,
- Government tax law allows individuals to expense certain business activities.
- Self Employed Person (SEP) — Acronym,
- A person who runs a trade or business, rather than working as an employee for someone else. You are self-employed if you are a sole proprietor or a partner working in a business. You can be an employee and self-employed at the same time if you have an independent business outside your regular employee hours. To qualify for many business tax exclusions and deductions, the enterprise must make a profit in three of five years. In most cases in order to qualify you must take and average of the last 2-3 years tax assessments.
- Tax Deduction — Definition,
- An expense that governments allow you to subtract from your income before computing your income tax.