Meals
To calculate your meal expenses, you can use either the simplified or detailed method, or in certain situations, the batching method.
The most you can deduct for meal expenses is 50% of your claim (unless you are a long-haul truck driver claiming meals for an eligible trip). For example, if you use the simplified method, which is based on a daily meal rate of $17 per meal, the most you can deduct is $8.50 ($17 x 50%) for each meal.
Under either the simplified or detailed method, you can claim one meal after every four hours from the departure time, to a maximum of three meals per day. For the purposes of calculating the maximum number of meals allowed, a day is considered to be a 24-hour period that begins at the departure time.
The simplified method – This is the easiest way to calculate your meal expenses since you do not have to keep receipts for your meals, although you do have to keep a detailed list of the trips you take in record or log book. The simplified method is based on a meal rate of $17 for each meal. Multiply the actual number of meals you ate by $17 (to a maximum of three meals per day) and report that amount on Form TL2, Claim for Meals and Lodging Expenses, under the “Meals bought” column of Part 2 – Trip and expense summary.
The detailed method – If you choose to use the detailed method to calculate your meal expenses, you have to keep a log or record book itemizing each expense. You also have to keep receipts to support the amount you deduct. Report the actual amount you spent on meals on Form TL2 under the “Meals bought” column of Part 2 –Trip and expense summary.
The batching method – When you are part of a work crew, such as on a train, your employer may provide you with cooking facilities. If you buy groceries and cook meals either by yourself or as a group, each person can claim up to $34 for each day. As long as you do not claim more than this amount, you do not have to keep receipts. Report this amount on Form TL2 under the “Meals bought” column of Part 2 – Trip and expense summary.
Lodging and showers
You can deduct your lodging expenses. The costs of showers are also considered to be deductible as part of lodging expenses for transportation employees who may have slept in the cab of their trucks rather than at hotels. You need to keep your receipts to support the amount you deduct.
Trips to the United States
You can claim the meal and lodging expenses you incur while performing your duties as a transport employee in the United States. If you are using the simplified method of reporting meal expenses, you are entitled to US$17 per meal while in the United States. The most you can deduct for meal expenses is 50% of your claim, just as it is for trips within Canada (unless you are a long-haul truck driver, as described in Meal expenses of long-haul truck drivers).
Calculate the total U.S. dollar amount of both the meal and lodging expenses incurred in the United States and convert these two totals to Canadian dollars by multiplying them by the Bank of Canada average annual U.S. conversion rate. You can contact CRA to get this conversion rate.
Provide a summary of your trips to the United States in Part 2 – Trip and expense summary of Form TL2, Claim for Meals and Lodging Expenses. Attach a more detailed list of these trips to this form.
Meal expenses of long-haul truck drivers
Meal and beverage expenses of long-haul truck drivers are deductible at a higher rate than the 50% permitted for other transportation employees. During eligible travel periods in 2010, meal and beverage expenses are deductible at 75%. This rate will increase by 5% each year until the maximum rate of 80% is reached in 2011.
You are a long-haul truck driver if you are an employee whose main duty of employment is transporting goods by way of driving a long-haul truck, whether or not your employer’s main business is transporting goods, passengers, or both.
A long-haul truck is a truck or tractor that is designed for hauling freight, and has a gross vehicle weight rating of more than 11,788kg.
An eligible travel period is a period during which you are away from your municipality or metropolitan area for at least 24 hours for the purpose of driving a long-haul truck that transports goods at least 160 kilometers from the employer’s establishment to which you regularly report to work
For more information on how to deduct your meals and lodging expenses, see Meals and lodging (including showers).
If you travel to the United States for your work as a transport employee, see Trips to the United States.
Note: You must reduce your claim for meal and lodging expenses; by any non-taxable allowance or reimbursement you received or are entitled to receive from your employer.
Your employer has to sign Form TL2. You do not have to send this form with your return, but you should keep it in case CRA ask to see it later.
Railway employees
You can claim the cost of meals and lodging when you meet one of the following conditions:
- You work away from home for a railway company as a telegrapher or station agent in a relief capacity, or carrying out maintenance and repair work for the railway company.
- You are a railway employee who works away from the municipality and the metropolitan area (if there is one) where your employer’s relevant establishment (home terminal) is located. You also work at such a distant location that it is unreasonable for you to return daily to your home, where you support a spouse or common-law partner, or a dependant related to you.
If you meet one of these conditions, see Meals and lodging (including showers) for more details.
Note: You must reduce your claim for meal and lodging expenses; by any non-taxable allowance or reimbursement you received or are entitled to receive from your employer.
Your employer has to sign Form TL2. You do not have to send this form with your return, but you should keep it in case CRA ask to see it later.
Transportation employees
You may be able to claim the cost of meals and lodging (including showers) if you are an employee of a transport business, a railway employee, or other transport employee. This cost includes any GST and provincial sales tax or HST, you paid on these expenses. You may be able to get a rebate of the GST/HST you paid.
Salaried employees
You may be eligible to claim a deduction for employment expenses if you incurred any of the following expenses.
Use Form T777, Statement of Employment Expenses to calculate your total employment expenses. The following are the types of deductible expenses that appear on Form T777
- Accounting and Legal Fees
- Traveling expenses
- Supplies
- Office Rent
- Allowable motor vehicle expenses
- Parking
- Salary expenses
- Work-space-in-the-home expenses
Your employment expenses include any GST and provincial sales tax, or HST, you paid on these expenses. You may be able to get a rebate of the GST/HST you paid. For more information go to CRA web site.
Forestry operations
You can deduct expenses for buying and using a power saw (including a chain saw or tree trimmer) if you meet all of the following conditions:
- You work in forestry operations
- You use the power saw to earn your employment income.
- You had to pay for them under your contract of employment and your employer will not be reimbursing you.
You can deduct the cost of a power saw in the year you buy it. However, you have to subtract from the purchase price of the new power saw the value of any trade-in or any amount you received from the sale of any power saw during the year.
When you file your return, attach a statement that breaks down the cost of running the power saw. Also, keep with your records a copy of Form T2200, Declaration of Conditions of Employment that has been completed and signed by your employer.
Expenses to operate a power saw include any GST and provincial sales tax, or HST, you paid. You may be able to get a rebate of the GST/HST you paid.
You cannot deduct expenses for traveling from your home to a place where you are required to report to work on a regular basis. These expenses are personal. For example, you cannot deduct expenses for traveling from your home to a forest camp or to a cutting site if you go to that place on a regular basis. However, the motor vehicle expenses for traveling from a forest camp set up by your employer to the cutting site are incurred in the course of employment. These expenses are therefore deductible if you meet the conditions described under Allowable motor vehicle expenses.
You cannot deduct the cost of horses and harnesses, snowmobiles, or all-terrain vehicles because these are capital expenditures. Also, you cannot deduct capital cost allowance or interest you paid on money borrowed to buy them.