I think LC has it right.
It's revenue to your company, but your company may be able to pass it on to its employee (you) as a tax free allowance as long as it meets the criteria for a reasonable tax free allowance. (and the company does not otherwise pay the actual expenses).
Alternatively, your company can deduct the actual expenses incurred. A Fort Mac or Calgary accountant will probably have dealt with this situation.
Agree that makes sense, either do it as a pass through LOA in as revenue equals LOA to "employee" self or LOA as revenue - minus actual expenses of employee or company = profit or loss, I think you would only do this if you knew that were going to consisently spend more on living than LOA amount , other than that its more paper work and more tax paid.
The company I contract to doesn't pay me a LOA as I used to live in Calgary and have since moved. So I pay myself a LOA for meals equal to the gov't rate for private residence stay. Company cuts cheque for rent.
I guess its six of one half doz of the other in this case but, to make it easier for myself (as well as continuing what I've been doing & not wanting to switch out my method), I will simply consider these monies as income to the company and against said income, keep ea and every reciept. Then use those receipts as legit company expenses for having its sole employee work out of town. For me this is the easier way to keep track. At least at this stage of the game.
On another note:
I sent a memo to Bill Gates that after 22 frustrating years, our relationship is over. Finally had it with Microsoft and their endless updates, issues & BS. Have left the dark side to a BNIB Mac Book Pro 15" ..quite different, but my oh my what a machine ... so sweet.! Added Office for Mac while i was at it.
Computer expensed to company.!
Cheers guys and yea...Charlie I do believe you nailed it on the head with your last post. Understand now what the options are.
I do appreciate all the input and thank you all for your commentary.!
Last edited by steakman; 2012-08-23 at 01:56 PM.