# Travel Expenses - Corporation



## SkGold (Jan 20, 2014)

Hello,

I have a small Canadian Corporation. We bought a premium travelers membership with some resort, it is similar to timeshare. Can I deduct this as Travel Expenses on corporation income tax?

Thanks.


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## Jagas (Feb 11, 2013)

You can deduct any reasonable current expense that you incurred in order to earn business income. Consider business versus personal use here and current expense versus capital.
My guess: not likely but it really depends on the specific facts in your case.


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## HaroldCrump (Jun 10, 2009)

Sounds like a personal vacation expense to me.


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## SkGold (Jan 20, 2014)

Thank you guys. The Membership Agreement is under a corporation name. So it is a property of corporation, isn't it? Does it change anything or it is still sounds like a personal expense?


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## wendi1 (Oct 2, 2013)

It's not whose name it's in - it's what it's used for. Are you meeting potential or current customers there? Attending conferences? Gleaning income from tenants that goes through your corporation?

Sounds like a personal expense to me, too.


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## Guban (Jul 5, 2011)

wendi1 said:


> It's not whose name it's in - it's what it's used for. Are you meeting potential or current customers there? Attending conferences? Gleaning income from tenants that goes through your corporation?
> 
> Sounds like a personal expense to me, too.


+1


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## OptsyEagle (Nov 29, 2009)

SkGold said:


> Thank you guys. The Membership Agreement is under a corporation name. So it is a property of corporation, isn't it? Does it change anything or it is still sounds like a personal expense?


Also, if this is personal use property, the entire cost may be taxable to you personally as an employee benefit. At least it should be.


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## Ponderling (Mar 1, 2013)

The only situation I ever saw where this worked was as follows:

We, Canadian consuting engineers, were invited to develop the prelminary design for a potential busway in Brisbane, Australia, based on a few NA such projects we developed. 

Frequently we would have two or three senior guys down at a time, for a week or two to present a report, gather data, meet key stakeholders meet,etc. This was projected to go on for a period of 7-8 months. 

The corp leased an apartment and furniture for a year. It was going to be a long shot cheaper than putting people up in hotels for extened periods of time.

The economics of it were something crazy, like having a person there for 2.5 days a month was cheaper than renting a downtown hotel and eating breakfast in its restaurant before morning slate of meetings. 

It also allowed staff to have some meals in while busy getting some material in under deadline, or while getting adjusted though jet lag at times. 

We ended up keeping it for a few years.

I was there full time for 3.5 years , and Corp rented me a house and a car as well.

I also had use of this apartment when it was otherwise idle ( nice, downtown, next to botanic gardens) 
I was expected to have laundry done, ac running high, and sundry breakfast foods in the fridge in advance of people arriving to stay there. 
I would also freqently pick them up from the airport, and have bus or train passes bought and laid out on the kitchen table, or whatever elese they had asked me to lay in before they arrived.


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## Zeeshanbmerchant (Jan 4, 2014)

Clearly a personal vacation. 

Corporation can pay for it, and the FMV will be a taxable benefit for you. 

http://www.cra-arc.gc.ca/E/pub/tp/it470r-consolid/it470r-consolid-e.html#P106_5501

Holiday Trips, Other Prizes and Incentive Awards

¶ 10. Where an employer pays for a vacation for an employee, the employee's family or both, the cost thereof to the employer constitutes a taxable benefit to the employee under paragraph 6(1)(a). Similarly, where a vacation property owned by an employer is used for vacation purposes by an employee, the employee's family or both, there is a taxable benefit conferred on the employee under paragraph 6(1)(a) the value of which is equivalent to the fair market value of the accommodation less any amount which the employee paid therefor to the employer. In any case, the taxable benefit may be reduced if there is conclusive evidence to show that the employee was involved in business activities for the employer during the vacation.


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## OurBigFatWallet (Jan 20, 2014)

I agree with the above - sounds personal. In general business expenses need to be for the purpose of earning business income. If you were in the travel industry and relied on travel to earn a living then maybe. But in your case it sounds 100% personal


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