What travel expenses can I deduct for my self-employed business in Ontario?
Business travel expenses are deductible when the travel is undertaken to earn income from your business and is not personal in nature. Deductible costs typically include transportation (airfare, trains, rental cars), accommodation, and 50% of meals while traveling for business. Reasonable incidental costs such as parking and taxis during a business trip may also be deductible.
The key rule is that the primary purpose of the trip must be business. If you add personal days to a business trip, only the portion attributable to business can be deducted — accommodation costs for personal days, for instance, are not deductible. Travel between your home and your regular place of business is generally not deductible because it is considered personal commuting.
Detailed records are especially important for travel: keep receipts, note the business purpose of each trip, and identify who you met with. The CRA scrutinizes travel expenses closely because they can be personal in nature. For international travel, the same principles apply, but the documentation burden is higher.
Key takeaways
- Business travel costs including transport, accommodation, and 50% of meals are deductible.
- The primary purpose of the trip must be business; personal components must be excluded.
- Commuting from home to a regular place of business is not deductible.
- Detailed records of purpose, participants, and receipts are essential to support travel claims.