# Remote Employee expenses for Self Employed



## skiwest (Oct 24, 2011)

I'e read some of the CRA stuff on this but not sure how it would apply to my situation which is:

an incorporated contractor to a company
just sold prinicple residence so moving to cabin in B.C. , well wife is phyically moving
I will be renting room /apartment/something here in Calgary and going to BC on weekends

What I was planning to expense to my company:

- all costs for lease of truck that would be used to go back and forth
- cost of room

What I don't know how to handle is food while in Calgary? Can I pay myself a tax free per diem? or do I have to receipt the whole thing or are food expenses not claimable?

thanks


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## MoneyGal (Apr 24, 2009)

I'm not sure any of that is claimable. 

Food expenses are typically only claimable at 50% if you are entertaining clients (with special rules for long-haul truck drivers and bicycle and foot couriers). 

Your personal accommodation is not claimable. 

Car expenses are claimable when they are incurred to earn income - travelling between your home and your work site is not normally included. 

The remote employee expense rules apply when the work (and hence the employee) is located in a remote location - it's not applicable when you live in a remote location but work in an urban setting (Calgary). 

Unless I'm really misreading your post, I'm not sure how any of those expenses are deductible in any way.


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## stardancer (Apr 26, 2009)

Calgary is not considered a remote location (zone A or B) so no credit is available for working there.

No deduction is available for travelling back and forth from your work to home and back or for personal meals, even if you are self-employed.


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## skiwest (Oct 24, 2011)

Wow I was scaried there so I phoned accountant and he said I could claim lease of vehicle plus gas and all expenses as long as 90% of mileage was business

total room cost

food tricker but could pay myself a per diem of a reasonable amount $30-$40 per day. the Gov't pays $50 for private accom so I could use that

His point is that time in Calgary is to make money for company so any costs to execute contract away from prinicple residence is business expense.


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## MoneyGal (Apr 24, 2009)




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## ghostryder (Apr 5, 2009)

You should consider getting a better accountant. This one's going to cost you. (penalties & interest)


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## skiwest (Oct 24, 2011)

Its funny but there are tons of people in Calgary who do this. Who live in Edmonton or other places and work in Calgary and right off all expenses for living in Calgary against there contract earnings.

How is it different than wehen I was an employee of a company that sends to wherever and pays flight there, pays for my apartment, supplies me with a car and pays me a per diem tax free in a place where food cost was alot less than Canada?

Any way this guys practice is probably 50% small contracts that do this so I'm not concerned.


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## skiwest (Oct 24, 2011)

Actually just spoke to someone two offices down who has been doing the same for his whole career , 30 years. has been audited but these expenses were not a problem.


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## marina628 (Dec 14, 2010)

Call the government and see what they say ...


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