Tax Write Off: Home-Based Business Meals
Photo credit: Andrew Rubtsov (AR Stock)
If you’re running a home-based business and eat your lunch at home most of the time, you may neglect writing off meals thinking “it’s just groceries we’d be buying anyway”. You should keep all your grocery/dining out receipts for the year, and then add a pro-rated amount of meals to your tax return. I didn’t do it in the past either, but for 2007 tax year I’ll be sure to include 1/3 of our grocery bills to our expenses. My 1/3 number is based on “breakfast, lunch and dinner”. Then of course that 1/3 will be further reduced by 50% because you can only write off half the meals (on a Canadian return, anyway).