���ӽ�

Business Travel Write-Offs Explained

Travel write-offs can save you money, but only if you follow the CRA’s rules.

We’ve seen a lot of Canadian business owners try to write off trips that don’t really qualify. And we get it. You’re already spending the money, so why not make it deductible?

But if you get too aggressive, you might end up with a nasty audit.

This article walks through the rules around business travel, shares real-life examples, and helps you figure out what’s legit and what could get you in trouble.

TL;DR – Travel Write-Offs for Canadian Businesses

• Business purpose required – The trip must be taken to earn business income (think: client meetings, conferences, or site visits).
  
  
• Only reasonable expenses allowed – Flights, hotels, meals (50%), and transportation are usually deductible if they aren’t excessive.
  
  
• Personal costs don’t count – You can’t deduct your family’s vacation expenses or personal days tacked onto a business trip.
  
  
• Documentation is key – Keep receipts, agendas, and notes that clearly show the business reason for the trip.
  
  
• CRA wants proof – Be prepared to back up your deductions if CRA comes calling.

What Counts as a Legitimate Business Trip?

First up, what counts as a legitimate business trip?

To be deductible, a travel expense has to be made to earn business income. That means the trip needs to have a clear business purpose.

For example, things like:

• Meeting with clients or suppliers – You’re traveling to pitch a deal, close a sale, or check in with existing clients.
  
  
• Attending a conference or training – You’re there to improve your skills or learn something directly related to your business.
  
  
• Scouting new locations – If you're expanding or looking at potential opportunities, that can be a valid reason too.
  

If the CRA asks, you need to be able to show that the main reason for the trip was business. A family vacation where you answered a few emails doesn’t count.

You’ll also want to keep records, including:

• Receipts for Flights, hotels, meals, transportation.
  
  
• Itineraries or conference agendas to show what you did and when.
  
  
• Notes or emails showing who you met with and why.
  

If there’s no paper trail, it’s a lot harder to justify the deduction.

Want to make it easy on yourself? Track your trip details as you go using a notes app or spreadsheet. That way, if the CRA ever asks, you’re ready.

What Travel Costs Can You Deduct?

Once you’ve confirmed that your trip was for business purposes, you can deduct reasonable travel expenses. 

The key word here is reasonable. If it looks like you were living large at a five-star resort and calling it work, that can be a bit of a red flag.

Here’s what you can typically deduct:

• Transportation costs – This includes costs such as flights, train tickets, taxis, Ubers, car rentals, gas, parking, and tolls.
  
  
• Accommodation – Hotel or Airbnb stays while you're away on business are deductible, as long as they’re not overly lavish. A comfortable hotel is fine. A $1,200-per-night suite with a private butler? Probably not. Remember, “reasonable” is the key word here.
  
  
• Meals – You can deduct 50% of the cost of meals while traveling for business. Keep receipts and try to note who you were with and what the purpose was.
  
  
• Incidentals – This can include things like baggage fees, Wi-Fi charges, or tips, as long as they’re part of the business trip.
  

A few important reminders:

• Personal expenses aren’t deductible, even if you were on a business trip.
  
  
• If the trip was partly personal, only the business portion of the costs is deductible. You’ll need to be able to reasonably split and justify the expenses.
  
  
• No receipts means no way to support your deduction. CRA expects documentation.
  

If it helps, we often tell clients to treat it like you’re going to need to explain it to a skeptical auditor. If you can clearly tie it back to business, it’s likely fine.

And if you're looking for more info on write-offs, check out our article on what expenses you can deduct in your business. It covers everything from meals and supplies to home office costs.

We’ve also got a detailed guide on what vehicle expenses you can deduct, which is super helpful if you're driving to meetings or out-of-town client visits.

When Travel Write-Offs Start Getting Risky

This is where things can get a bit dicey. Some business owners assume any trip can be written off as long as they bring a laptop. Unfortunately, CRA doesn’t work that way.

Here are a few situations where CRA may challenge your travel deductions:

Mixing Business with Too Much Pleasure

If most of your trip was personal and only a tiny portion was work-related, CRA won’t let you deduct the full cost. For example, if you go to Mexico for two weeks and take one client call while sitting poolside, that won’t cut it.

You’d need to prorate the costs and only claim the business portion. CRA expects that you can clearly explain and support this split.

Taking Family or Friends

If your spouse, kids, or friends come along, their portion of the costs generally isn’t deductible unless they were also working in the business and had a legit business reason to be there.

For example, if your spouse is a co-owner and helped run a workshop during the trip, that might be fine. But if they just tagged along, their flight, meals, and hotel share wouldn’t be deductible.

Luxury or Lavish Expenses

The CRA uses the word "reasonable" when it comes to deductions. If you're writing off luxury resorts, first class flights, or extravagant meals, that could potentially raise some eyebrows.

You don’t need to stay at a motel and eat plain toast, but there’s a line. If your travel choices seem excessive, they may be partially or fully denied.

No Clear Business Purpose

If you can’t show a clear business purpose for the trip, like meetings, conferences, or client work, CRA is likely to deny the write-off.

That’s why documentation matters. Save emails, receipts, agendas, and anything else that shows why the trip was necessary for your business.

The Importance of Documentation

If you want to write off travel expenses, you need solid documentation. This is one of the biggest factors CRA looks at when deciding whether to accept or deny your deductions.

Keep Receipts and Itineraries

Always keep receipts for flights, hotels, taxis, meals, and any other costs you’re claiming. If the receipt doesn’t show the full story, add some notes explaining the business reason for the expense.

Flight confirmations and hotel bookings with your name and dates are also helpful to back up your claims.

Track the Business Purpose

Write down what the trip was for. Who did you meet with? What did you work on? Was there a conference or industry event?

This can be as simple as a calendar note, email chain, or written agenda. CRA just wants to see that the trip had a clear business purpose and wasn’t just a vacation.

Separate Personal and Business Costs

If a trip includes both personal and business activities, make sure to split the costs and only claim the business portion.

For example, if you stayed three days for business and one more for fun, only claim three-quarters of the hotel. Meals, taxis, and flights should also be adjusted if they served a personal purpose.

CRA Might Ask for Documentation

You don’t need to send all of this info when you file your taxes, but CRA can request it later if they review or audit your return.

If you can show a paper trail that matches your claims, you’re in a much better position. If not, they can deny the deduction and charge penalties or interest.

Final Thoughts

Travel write-offs can be a great way to reduce your tax bill, but only if you’ve got a solid business reason and the paperwork to back it up.

If you’re ever unsure whether something qualifies, it’s worth asking your accountant before you try to claim it. It’s a lot easier to check in advance than to deal with a CRA review later on.

And if you want a second opinion or some help with your bookkeeping and tax planning, - we’re happy to help.

FAQ: Travel Write-Offs for Canadian Businesses

Can I write off a family vacation if I do some work while I’m away?

‍Not likely. The CRA looks at the primary purpose of the trip. If it was mostly a vacation and you only answered a few emails, it won’t qualify. To claim the trip, you need a clear business reason, like meetings or attending a conference, and solid documentation to back it up.

What if my spouse or kids come along on a business trip?

‍You can only deduct their expenses if they were working in the business and had a legitimate business reason for being there. If they were just tagging along, their share of the flights, meals, and accommodations isn’t deductible.

Can I deduct meals and entertainment during a business trip?

‍Yes, but only 50% of the cost of meals. And it has to be directly related to earning business income. Keep the receipts and make a quick note of who you were with and why.

Do I need to keep receipts for all travel expenses?

‍Yes. CRA expects documentation for any expense you claim. Keep receipts, flight confirmations, hotel bookings, and notes about what the trip was for. If you can’t show proof, they can deny the deduction.

How do I handle a trip that’s both business and personal?

‍You’ll need to split the costs and only claim the portion related to business. For example, if you stay five nights, four for work and one for leisure, then only four nights of the hotel stay are deductible. Same goes for other expenses like meals and transportation.