,canada ,cu/oms                       #a
& ,rev5ue ,ag5cy

          ,9t]pret,n ,bullet9
    
,subject3 ,9come ,tax ,act
  ,food1 ,b"eages & ,5t]ta9;t ,exp5ses
,numb]3 ,,it-#eah;,r
,date3 ,april #af1 #aiif
,ref];e3 ,sec;n #fg.a 7al sec;ns #fb1
  #fc & #aah.b1 subsec;ns #f7#f7 &
  #h7#a71 & p>agraphs #f7#a77b7 &
  #ah7#a77h77

  ,at ! ,canada ,cu/oms & ,rev5ue ,ag5cy
7,,ccra71 we issue 9come tax 9t]pret,n
bullet9s 7,,it's7 9 ord] 6provide
te*nical 9t]pret,ns & posi;ns reg>d+
c]ta9 provi.ns 3ta9$ 9 9come tax law4
,due 6_! te*nical nature1 ,,it's >e us$
prim>ily 0\r /aff1 tax speciali/s1 & o!r
9dividuals :o h an 9t]e/ 9 tax matt]s4
,= ^? r1d]s :o pref] a less te*nical
explan,n (! law1 we (f] o!r public,ns1
s* z tax guides & pamphlets4          #a
              ,,it-#eah;,r           a#a
  ,:ile ! -;ts 9 a "picul> p>agraph 9 an
,,it may relate 6provi.ns (! law 9 =ce
at ! "t !y 7 made1 s* -;ts >e n a
sub/itute =! law4 ,! r1d] %d1 "!=e1
3sid] s* -;ts 9 li<t (! relevant
provi.ns (! law 9 =ce =! "picul> tax,n
ye> 2+ 3sid]$1 tak+ 96a3.t ! e6ect ( any
relevant am5d;ts 6^? provi.ns or
relevant c\rt deci.ns o3urr+ af ! date
on : ! -;ts 7 made4
  ,subject 6! abv1 an 9t]pret,n or
posi;n 3ta9$ 9 an ,,it g5],y applies z
(! date on : x 0 publi%$1 un.s o!rwise
specifi$4 ,if "! is a subsequ5t *ange 9
t 9t]pret,n or posi;n &! *ange is
b5eficial 6taxpay]s1 x is usu,y e6ective
= future assess;ts & reassess;ts4 ,if1
on ! o!r h&1 ! *ange is n fav\ra#
6taxpay]s1 x w norm,y 2 e6ective =!
curr5t & subsequ5t tax,n ye>s or =
transac;ns 5t]$ 96af ! date on : ! *ange
is publi%$4
  ,mo/ ( \r public,ns >e availa# on \r
,web site at3 _+www.ccra.gc.ca_:      #b
              ,,it-#eah;,r           b#a
  ,if y h any -;ts reg>d+ matt]s 4cuss$
9 an ,,it1 pl1se s5d !m to3

  ,manag]1 ,te*nical ,public,ns &
    ,projects ,sec;n
  ,9come ,tax ,rul+s ,directorate
  ,policy & ,legisl,n ,bran*
  ,canada ,cu/oms & ,rev5ue ,ag5cy
  ,ottawa ,,on ,k#a;,a #j;,l#e
  
  or 0email at ! foll[+ a4ress3
    _+bulletins@ccra.gc.ca_:
  
                 ,3t5ts
    
,applic,n
,summ>y
,4cus.n & ,9t]pret,n
  ,g5]al 7p>agraphs #a-c7
  ,excep;ns 6! #ej@3p ,limit,n 7p>agraph
    #d7
  ,provi.n ( ,food1 ,b"eages or
    ,5t]ta9;t = ,-p5s,n 7p>agraph #e7
                                      #c
              ,,it-#eah;,r           c#a
  ,fund-,rais+ ,ev5ts = ,regi/]$
    ,*>ities 7p>agraph #f7
  ,am.ts = : ! ,taxpay] is ,-p5sat$
    7p>agraph #g7
  ,b5efits ,9clud$ 9 an ,employee's
    ,9come or ,provid$ 6an ,employee at
    a ,remote ,"w ,loc,n 7p>agraph #h7
  ,employ]-,sponsor$ ,ev5ts or ,s]vices
    ,availa# 6,all ,employees 7p>agraphs
    #i-ac7
  ,am.ts ,9clud$ 9 ,f>es = ,transport,n
    7p>agraph #ad7
  ,3f];es1 ,3v5;ns & ,sem9>s 7p>agraph
    #ae7
  ,example 7p>agraph #af7
  ,food & ,b"eages 7p>agraph #ag7
  ,5t]ta9;t 7p>agraphs #ah-bj7
,explan,n ( ,*anges

               ,applic,n
    
  ,? bullet9 c.els & replaces ,9t]pret,n
,bullet9 ,,it-#eah1 dat$ ,m>* #bh1
#aihi4                                #d
                ,summ>y              d#a
    
  ,:5 calculat+ 9come1 a taxpay] may
norm,y deduct r1sona# am.ts pd or paya#
= food1 b"eages1 or 5t]ta9;t if ^? am.ts
>e 9curr$ =! purpose ( e>n+ 9come f a
busi;s or prop]ty or1 9 c]ta9
circum/.es1 f an (fice or employ;t4 ,9
o!r cases1 r1sona# co/s ( food1 b"eages1
or 5t]ta9;t c ei 2 9clud$ 9 9v5tory or
capitaliz$4 ,? bullet9 d1ls )! g5]al
limit,n on ! deduc;n1 ! am.t capitaliz$1
or ! am.t 9clud$ 9 9v5tory =a r1sona#
am.t pd or paya# = food1 b"eages1 or
5t]ta9;t1 z well z ! excep;ns 6? g5]al
limit,n4 ,x al li/s c]ta9 items : >e
3sid]$ 6be 5t]ta9;t exp5ses4 ,9 a4i;n1 ?
bullet9 expla9s ! special rule =! tr1t;t
( food1 b"eages1 or 5t]ta9;t exp5ses t
>e 9clud$ 9 3f];e1 3v5;n1 sem9>1 or
simil> ev5t fees4



                                      #e
          ,4cus.n & ,9t]pret,n        #b
    
        ,g5]al 7p>agraphs #a-c7
    
#a4 ,subsec;n #fg.a7#a7 provides t co/s
  9 respect (! human 3sump;n ( food or
  b"eages1 or ! 5joy;t ( 5t]ta9;t >e
  deem$ 6be #ej@3p (! less] (3
  7a7 ! am.t actu,y pd or paya# 9
    respect ( ^! items2 &
  7b7 an am.t t wd 2 r1sona# 9 !
    circum/.es 6pay = !m4
  ,9 ? bullet91 ? is ref]r$ 6z 8! #ej@3p
  limit,n40 ,x g5],y applies 6am.ts
  9curr$ af ,febru>y #ba1 #aiid 9
  respect ( food & b"eages 3sum$ &
  5t]ta9;t 5joy$ af ,febru>y #aiid4 ,2f
  ,febru>y #bb1 #aiid1 subsec;n
  #fg.a7#a7 provid$ t food1 b"eages &
  5t]ta9;t exp5ses 7 subject 6an #hj@3p
  limit,n4 ,v>i\s excep;ns 6! applic,n
  (! #ej@3p limit,n >e expla9$ 2l4 ,al1
  see #ae 2l =! special rule 3c]n+
  3f];e1 3v5;n & sem9> exp5ses4
                                      #f
              ,,it-#eah;,r           a#b
#b4 ,! #ej@3p limit,n applies = all
  purposes (! ,act1 o!r ?an sec;n #fb
  7mov+ exp5ses71 sec;n #fc 7* c>e
  exp5ses7 & sec;n #aah.b 7m$ical
  exp5ses74 ,! #ej@3p limit,n on am.ts
  exp5d$ = food1 b"eages or 5t]ta9;t
  applies equ,y :e!r ! am.ts >e o!rwise3
  7a7 deducti# z exp5ses2
  7b7 capitaliz$ 7e4g41 9clud$ 9 ! co/ (
    l& or deprecia# prop]ty72 or
  7c7 9clud$ 9 ! co/ ( 9v5tory1
    sci5tific rese>* & exp]i;tal
    develop;t exp5ditures1 explor,n &
    develop;t exp5ses1 or o!r co/s4
#c4 ,! #ej@3p limit,n applies 6re/rict
  o!rwise all[a# deduc;ns 9 -put+ 9come
  f a busi;s or prop]ty4 ,x may al
  re/rict am.ts o!rwise deducti# :5
  calculat+ 9come f employ;t "u3
  7a7 p>agraph #h7#a77e7--away-f-home
    m1l exp5ses ( railway employees2
  7b7 p>agraph #h7#a77f7--exp5ses (
    -mis.n salesp]sons2
                                      #g
              ,,it-#eah;,r           b#b
  7c7 p>agraph #h7#a77g7--away-f-home
    m1l exp5ses ( c]ta9 transport
    employees2 &
  7d7 p>agraph #h7#a77h7--travell+
    exp5ses ( employees ord9>ily requir$
    6"w away f ! employ]'s place (
    busi;s4
  
      ,excep;ns 6! #ej@3p ,limit,n
             7p>agraph #d7
    
#d4 ,subsec;n #fg.a7#b7 provides s"eal
  excep;ns 6! #ej@3p limit,n4 ,^! >e
  expla9$ 9 #e 6#ac 2l4

     ,provi.n ( ,food1 ,b"eages or
     ,5t]ta9;t = ,-p5s,n 7p>agraph
                  #e7
    
#e4 ,"u p>agraph #fg.a7#b77a71 ! #ej@3p
  limit,n does n apply if ! am.t is pd
  or paya# = food1 b"eages or 5t]ta9;t
  6be provid$ 9 ! ord9>y c\rse (a
  p]son's or a "pn]%ip's busi;s (     #h
              ,,it-#eah;,r           c#b
  provid+ ! food1 b"eages or 5t]ta9;t =
  -p5s,n or 9 expect,n ( -p5s,n4 ,?
  exempts1 = example1 re/aurants1 hotels
  & airl9es f ! #ej@3p limit,n if !
  exp5ses >e 9curr$ 6provide food1
  b"eages1 or 5t]ta9;t 6pay+ cu/om]s4
  ,if a taxpay]'s product or s]vice is
  food1 b"eages or 5t]ta9;t1 promo;nal
  samples >e al exclud$ f ! #ej@3p
  limit,n4 ,! exemp;n only applies
  6am.ts exp5d$ = food1 b"eages1 &
  5t]ta9;t t =m "p (! taxpay]'s product
  or s]vice4 ,"!=e1 if employees (a
  4till]y or food -pany1 = example1 take
  cu/om]s \ =a busi;s m1l1 ! co/s =
  food1 b"eages1 & 5t]ta9;t >e subject
  6! #ej@3p limit,n4

     ,fund-,rais+ ,ev5ts = ,regi/]$
         ,*>ities 7p>agraph #f7
    
#f4 ,"u p>agraph #fg.a7#b77b71 ! #ej@3p
  limit,n does n apply if ! exp5ses =
  food1 b"eages or 5t]ta9;t >e =a     #i
              ,,it-#eah;,r           d#b
  fund-rais+ ev5t1 ! prim>y purpose ( :
  is 6b5efit a regi/]$ *>;y4 ,! #ej@3p
  limit,n wd1 h["e1 apply 6! price (
  admis.n 6an ev5t t is "p (! regul>
  activities (a regi/]$ *>;y 6a3ompli%
  xs objectives4 ,= example1 ! co/ (
  pur*as+ tickets =a cli5t 6att5d a
  s]ies ( plays put on 0an amateur !atre
  gr\p t is a regi/]$ *>;y is n exempt f
  ! #ej@3p limit,n4 ,on ! o!r h&1 ! co/
  ( 5t]ta9+ ! cli5t at ! *>;y's annual
  fund-rais+ d9n] wd 2 exempt f ! #ej@3p
  limit,n4

        ,am.ts = : ! ,taxpay] is
         ,-p5sat$ 7p>agraph #g7
    
#g4 ,"u p>agraph #fg.a7#b77c71 ! #ej@3p
  limit,n does n apply if ! am.t pd or
  paya# 0a p]son or "pn]%ip = food1
  b"eages1 or 5t]ta9;t is3
  7a7 an am.t = : ! p]son or "pn]%ip is
    -p5sat$2
                                     #aj
              ,,it-#eah;,r           e#b
  7b7 ! am.t (! -p5s,n is r1sona#2 &
  7c7 ! am.t is specific,y id5tifi$ 9
    writ+ 6! p]son pay+ ! -p5s,n4
  ,= example1 a self-employ$ 9dividual
  exp5ds a r1sona# am.t = m1ls :ile away
  f home4 ,? am.t is ultimately bill$ 6a
  cli5t & is id5tifi$ 9 ! a3.t submitt$
  6! cli5t z an exp5se relat+ 6m1ls4 ,!
  self-employ$ 9dividual wd 2 5titl$
  6fully deduct ! m1l exp5ses4 ,! #ej@3p
  limit,n wd1 h["e1 apply 6! cli5t4
--------------------------------------#c
         ,b5efits ,9clud$ 9 an
     ,employee's ,9come or ,provid$
     6an ,employee at a ,remote ,"w
          ,loc,n 7p>agraph #h7
    
#h4 ,"u p>agraph #fg.a7#b77d71 ! #ej@3p
  limit,n does n apply if ! am.t pd or
  paya# = food1 b"eages or 5t]ta9;t wd 2
  9clud$ 9 ! employee's 9come except =!
  provi.ns ( subp>agraph #f7#f77a77;ii7
  relat+ 6employ;t at a remote loc,n
  7see ! curr5t v].n ( ,,it-#ia1     #aa
              ,,it-#eah;,r           a#c
  ,employ;t at ,special or ,remote ,"w
  ,sites74 ,acly1 am.ts >e n re/rict$ if
  pd = food or b"eages = employees at a
  loc,n ":1 due 6xs remote;s f any
  e/abli%$ -mun;y1 ! employee cd n
  r1sonably 2 expect$ 6e/abli% & ma9ta9
  a self-3ta9$ dome/ic e/abli%;t4

  ,p>agraph #fg.a7#b77d7 al provides t
  an employ] is n subject 6! #ej@3p
  limit,n on all[.es or reimburse;ts =
  m1l or 5t]ta9;t exp5ses t h 6be 9clud$
  9 an employee's 9come4 ,h["e1 :5
  calculat+ employ;t 9come1 ! employee
  wd 2 subject 6! #ej@3p limit,n on any
  deduc;n ( relat$ am.ts t mi<t 2
  availa# "u subsec;n #h7#a7--see #c
  abv4 ,on ! o!r h&1 an employ] is
  subject 6! #ej@3p limit,n on a r1sona#
  m1l all[.e t is pd 6an employee =
  travel away f home1 if t all[.e is n
  9clud$ 9 ! employee's 9come "u
  p>agraph #f7#a77b74 ,simil>ly1 !
  #ej@3p limit,n applies 6an ov]"t   #ab
              ,,it-#eah;,r           b#c
  m1l all[.e or reimburse;t pd 0!
  employ]1 if ! am.t is n 9clud$ 9 !
  employee's 9come4 ,9 a4i;n1 ! #ej@3p
  limit,n applies 6an employ]'s deduc;n
  ( am.ts reimburs$ 6an employee = m1l
  exp5ses 9curr$ 9 ! c\rse ( an employ]-
  sponsor$ reloc,n4 ,h["e1 ! #ej@3p
  limit,n does n apply 6m1l exp5ses
  claim$ 0! employee : >e eligi# mov+
  exp5ses "u sec;n #fb4

      ,employ]-,sponsor$ ,ev5ts or
        ,s]vices ,availa# 6,all
      ,employees 7p>agraphs #i-ac7
    
#i4 ,"u p>agraph #fg.a7#b77e71 ! #ej@3p
  limit,n does n apply if ! employ]
  9curs ! am.t = food1 b"eages or
  5t]ta9;t t is g5],y availa# 6all xs
  employees at a "picul> place ( busi;s
  & is 3sum$ or 5joy$ 0!m4 ,? exempts
  co/s 9curr$ =a ,*ri/mas "py or simil>
  ev5t 6: all employees at a "picul>
  place ( busi;s h a3ess4            #ac
              ,,it-#eah;,r           c#c
  ,employ]-op]at$ re/aurants or
  cafet]ias t >e availa# 6all employees
  at a "picul> place ( busi;s >e al n
  subject 6! #ej@3p limit,n4 ,h["e1
  subsidiz$ m1ls may give rise 6a taxa#
  b5efit 6! employees1 dep5d+ on :e!r or
  n a r1sona# *>ge is pd--see ! curr5t
  v].n ( ,,it-#dgj1 ,employees' ,fr+e
  ,b5efits4 ,re/rict$ facilities1 s* z
  an executive l\nge or d9+ room1 wd alw
  2 subject 6! #ej@3p limit,n4
#aj4 ,=! purposes ( p>agraph
  #fg.a7#b77e71 a 8"picul> place (
  busi;s0 cd 9clude a clu/] ( build+s1 a
  build+ or a por;n (a build+1 dep5d+ ^u
  ! circum/.es4 ,= example1 an employ]
  :o o3upies "o /orey (a build+ 9 ! we/
  (! c;y &a build+ 9 ! ea/ (! c;y wd h
  two 4t9ct places ( busi;s4 ,on ! o!r
  h&1 an employ] :o o3upies two or m
  build+s adjac5t 6ea* o!r mi<t only h
  "o "picul> place ( busi;s 9 respect (
  ^? build+s1 dep5d+ on ! surr.d+
  circum/.es4 ,if a3ess 6! build+s   #ad
              ,,it-#eah;,r           d#c
  is re/rict$ = secur;y1 safety or o!r
  op],nal r1sons1 ea* ( ^? build+s cd 2
  reg>d$ z a sep>ate place ( busi;s4
#aa4 ,"o example (a loc,n : wd g5],y 2
  3sid]$ 8a "picul> place ( busi;s0 is a
  cu/om]'s premises : >e locat$ well
  \tside ! municipal;y ": ! employ]'s
  op],ns >e usu,y c5tr$4 ,al1 a site t
  qualifies z a 8special "w site0 =!
  purposes ( subp>agraph #f7#f77a77;i71
  c g5],y 2 3sid]$ a 8"picul> place (
  busi;s40 ,z a result1 food1 b"eages &
  5t]ta9;t z describ$ 9 #i abv1 t >e
  availa# 6all ( t employ]'s employees
  "w+ at s* a place ( busi;s1 wd n 2
  subject 6! #ej@3p limit,n4
#ab4 ,=! excep;n 9 p>agraph #fg.a7#b77e7
  6apply1 x is n nec =a "py or o!r ev5t
  6be held at ! place ( busi;s2 x may 2
  held at a re/aurant1 r5t$ hall or o!r
  loc,n4 ,! exemp;n "u p>agraph
  #fg.a7#b77e7 al applies 6! co/s (
  food1 b"eages & 5t]ta9;t =! employees'
  sp\ses & *n1 provid$ ^! >e (f]$    #ae
              ,,it-#eah;,r           e#c
  6sp\ses & *n ( all employees4 ,! co/s
  ( food1 b"eages & 5t]ta9;t provid$
  6p]sons :o "w at ! "picul> place (
  busi;s1 b n z employees1 & :o att5d !
  same g5],y-availa# "py or ev5t1 >e al
  3sid]$ 6be exempt "u ? provi.n4 ,? cd
  9clude [n]s1 "pn]s or %>ehold]-manag]s
  (! busi;s4 ,if a "py or ev5t is only
  availa# to1 or is prim>ily aim$ at1
  select$ employees or ! [n]s1 "pn]s1
  manag]s or %>ehold]s1 ! co/s >e n
  exempt$ f ! #ej@3p limit,n4 ,on ! o!r
  h&1 a "py or ev5t t is aim$ only at
  employees ( "o or m specific divi.ns
  )9 a v l>ge organiz,n cd qualify =!
  exemp;n1 provid$ ! ev5t is op5 6all
  employees )9 t divi.n4
#ac4 ,! exemp;n 9 p>agraph #fg.a7#b77e7
  is only availa# ": ! employ] ei
  provides ! food1 b"eages or 5t]ta9;t
  directly or makes ! >range;ts 6provide
  ^! ?+s4 ,all[.es & reimburse;ts pd
  6employees :o pur*ase food1 b"eages or
                                     #af
              ,,it-#eah;,r           f#c
  5t]ta9;t >e n eligi# = ? exemp;n f !
  #ej@3p limit,n4

        ,am.ts ,9clud$ 9 ,f>es =
      ,transport,n 7p>agraph #ad7
    
#ad4 ,p>agraph #fg.a7#d77a7 provides t
  no am.t pd or paya# = travel on an
  airplane1 tra91 or bus is 3sid]$ 6be =
  food1 b"eages1 or 5t]ta9;t4 ,acly1
  m1ls & b"eages s]v$1 & 5t]ta9;t
  provid$ :ile travell+ on ^! vehicles
  >e n subject 6! #ej@3p
--------------------------------------#d
  limit,n if ! co/ ( m1ls1 b"eages1 &
  5t]ta9;t >e 9clud$ 9 ! travel fee4 ,?
  excep;n does n apply 6food1 b"eages &
  5t]ta9;t provid$ :ile travell+ 0%ip1
  boat or f]ry4 ,^! exp5ses >e subject
  6! #ej@3p limit,n4



                                     #ag
       ,3f];es1 ,3v5;ns & ,sem9>s    a#d
             7p>agraph #ae7
    
#ae4 ,subsec;n #fg.a7#c7 may apply :5 a
  fee is pd or paya# = att5d.e at a
  3f];e1 3v5;n1 sem9> or simil> ev5t & t
  fee 5titles ! "picipant 6food1 b"eages
  or 5t]ta9;t4 7,=! purposes ( subsec;n
  #fg.a7#c71 9cid5tal b"eages &
  refre%;ts made availa# dur+ ! c\rse (
  meet+s or recep;ns1 s* z c(fee1 juice1
  d\<nuts & mu69s1 >e ignor$47 ,if a
  r1sona# "p (! fee =a 3f];e1 3v5;n1
  sem9> or simil> ev5t1 det]m9$ on !
  basis (! co/ ( provid+ ! food1 b"eages
  or 5t]ta9;t 6: ! "picipant is 5titl$1
  is n allocat$ or id5tifi$ 9 ! a3.t =!
  fee 0! organiz] (! ev5t z 2+ -p5s,n =!
  food1 b"eages or 5t]ta9;t1 !n ! rule 9
  subsec;n #fg.a7#c7 applies4 ,? rule
  /ipulates t = ea* "d t food1 b"eages &
  5t]ta9;t 7o!r ?an ! 9cid5tal items
  not$ abv7 >e provid$1 4#ej is deem$
  6be pd or paya# = food1 b"eages &
  5t]ta9;t4 ,? is ! am.t subject     #ah
              ,,it-#eah;,r           b#d
  6! #ej@3p limit,n4 ,! fee =! 3f];e1
  3v5;n1 sem9> or simil> ev5t is deem$
  6be ! actual fee pd or paya# m9us !
  am.t deem$ 6h be5 pd or paya# = food1
  b"eages & 5t]ta9;t4 ,! am.t ( 4#ej 9
  subsec;n #fg.a7#c7 may 2 sup]s$$ 0an
  am.t prescrib$ 9 ! ,regul,ns1 b no s*
  am.t has be5 prescrib$ z (! date ( ?
  bullet94 ,=a m detail$ 4cus.n ( ?
  topic1 ref] 6! curr5t v].n (
  ,,it-#aca1 ,3v5;n ,exp5ses4

        ,example 7p>agraph #af7
    
#af4 ,a fee ( 4#ejj is pd = att5d.e at a
  ?ree-"d busi;s 3f];e 9 #aiie4 ,m1ls &
  5t]ta9;t >e provid$ 6"picipants1 b no
  am.t (! fee is allocat$ or id5tifi$ =
  ^? s]vices4 ,z a result1 subsec;n
  #fg.a7#c7 deems 4#aej 6be pd or paya#
  = food1 b"eages1 & 5t]ta9;t 74#ej p]
  "d7 & 6be subject 6! #ej@3p limit,n4
  ,assum+ all o!r 3di;ns = deductibil;y
  >e met1 ! taxpay] may deduct       #ai
              ,,it-#eah;,r           c#d
  4#cej plus #ej@3p (! 4#aej deem$ 6be =
  m1ls & 5t]ta9;t 74#ge74 ,"!=e1 !
  maximum deduc;n =! 3f];e exp5se is
  4#dbe4

       ,food & ,b"eages 7p>agraph
                  #ag7
    
#ag4 ,! #ej@3p limit,n applies 6! co/ (
  food or b"eages = human 3sump;n 9clud+
  any relat$ exp5ses s* z taxes & tips4
  ,9 a4i;n1 ! co/ (a re/aurant gift
  c]tificate is 3sid]$ 6be an exp5se =
  food or b"eages & is subject 6?
  limit,n4

      ,5t]ta9;t 7p>agraphs #ah-bj7
    
#ah4 ,p>agraph #fg.a7#d77b7 9cludes
  amuse;t & recre,n z 85t]ta9;t40 ,sec;n
  #fg.a al m5;ns ! 85joy;t ( 5t]ta9;t40
  ,? ref]s 6! m]e att5d.e at or exp]i;e
  (! ev5t or s]vice4 ,:ile n an
  exhau/ive li/1 ! foll[+ items >e   #bj
              ,,it-#eah;,r           d#d
  3sid]$ 6be 5t]ta9;t exp5ses & >e
  subject 6! #ej@3p limit,n3
  7a7 ! co/ ( tickets =a !atre1 3c]t1
    a?letic ev5t or o!r p]=m.e2
  7b7 ! co/ ( private boxes at sports
    facilities2
  7c7 ! co/ ( room r5tals 6provide
    5t]ta9;t1 s* z a hospital;y suite2
  7d7 ! co/ (a cruise2
  7e7 ! co/ ( admis.n 6a fa%ion %[2
  7f7 ! co/ ( 5t]ta9+ gue/s at ni<t
    clubs1 a?letic1 social & sport+
    clubs & on vac,n & o!r simil> trips4
  ,exp5ses relat$ 6! abv items1 s* z
  taxes1 gratuities1 & cov] *>ges1 >e al
  subject 6! #ej@3p limit,n4
#ai4 ,= any \tlay = 5t]ta9;t 6qualify z
  a deducti# exp5se1 a taxpay] m/ 2
  prep>$ 6demon/rate t ! am.t 0 9curr$
  =! purpose ( e>n+ 9come 7see ! curr5t
  v].n ( ,,it-#dhg1 ,g5]al ,limit,ns on
  ,deduc;ns ( ,\tlays or ,exp5ses74
  ,records %d 2 ma9ta9$ (! "ns & busi;s
  a4resses (! cu/om]s or o!r         #ba
              ,,it-#eah;,r           e#d
  p]sons 2+ 5t]ta9$1 tgr )! relevant
  places1 dates1 "ts & am.ts support$
  0s* v\*]s z >e r1sonably obta9a#4
  ,exp5ses t >e p]sonal 9 nature 7o!r
  ?an exp5ses 9curr$ 0! taxpay] :ile
  away f home 9 ! c\rse ( c>ry+ on
  busi;s7 >e n deducti# 0virtue (
  p>agraph #ah7#a77h74 ,pay;ts =!
  s]vices (a secur;y escort or t\r guide
  =a busi;s cli5t >e norm,y deducti#
  7subject 6! #ej@3p limit,n7 provid$ !
  am.ts 7 9curr$ =! purpose ( e>n+
  9come4 ,h["e1 pay;ts 6:at >e "s"ts
  call$ 8escort s]vices0 = illicit
  s]vices (a p]sonal nature >e n"e
  3sid]$ 6be deducti# \tlays4
#bj4 ,if ! co/ ( food1 b"eages1 or
  5t]ta9;t is "p (a package price1 :
  9cludes am.ts n subject 6! #ej@3p
  limit,n1 ! taxpay] has 6det]m9e !
  value or make a r1sona# e/imate (!
  am.t subject 6! #ej@3p limit,n4 ,s* a
  det]m9,n or e/im,n is n requir$ if
  p>agraphs #fg.a7#b77c7 or          #bb
              ,,it-#eah;,r           f#d
  #fg.a7#d77a7 apply 7see #g & #ad abv7
  & is n p]mitt$ if subsec;n #fg.a7#c7
  applies 7see #ae abv74




















                                     #bc
          ,explan,n ( ,*anges         #e
    
               ,9troduc;n
    
  ,! purpose (! ,explan,n ( ,*anges is
6give ! r1sons =! revi.ns 6an 9t]pret,n
bullet94 ,x \tl9es revi.ns t we h made z
a result ( *anges 6! law1 z well z
*anges reflect+ new or revis$ de"p;tal
9t]pret,ns4

                ,ov]view
    
  ,9t]pret,n ,bullet9 ,,it-#eah;,r
describes ! rules :1 = tax purposes1
limit ! am.t t may 2 deduct$ = food1
b"eages & 5t]ta9;t exp5ses &! excep;ns
6^! rules4 ,? revi.n 0 "utak5 6reflect
am5d;ts 3ta9$ 9 ,s4,c4 #aiie1 c4#c
7=m]ly ,bill ;,c-#ei7 & ,s4,c4 #aiia1
c4#di 7=m]ly ,bill ;,c-#ah7 & 6cl>ify &
exp& on c]ta9 de"p;tal 9t]pret,ns4


                                     #bd
      ,legislative & ,o!r ,*anges    a#e
    
  ,new p>agraphs #a & #b replace =m]
p>agraph #a & reflect ! ,bill ;,c-#ei
am5d;t t reduces ! deducti# por;n (
food1 b"eages & 5t]ta9;t exp5ses f
#hj@3p 6#ej@3p = am.ts 9curr$ af
,febru>y #ba1 #aiid = food or b"eages
3sum$ or 5t]ta9;t 5joy$ af ,febru>y
#aiid4
  ,new p>agraph #c cl>ifies ! types (
exp5ses t may 2 a6ect$ 0! #ej@3p
limit,n4
  ,new p>agraphs #e 6#h br+ =w>d ! -;ts
9 =m] p>agraph #b7a7 to 7d74 ,new
p>agraph #h exp&s on & cl>ifies ! -;ts 9
=m] p>agraph #b7d7 3c]n+ ! applic,n (!
#ej@3p limit,n 6claims = m1l & 5t]ta9;t
exp5ses 0employees4 ,p>agraph #h al sets
\ \r posi;n 3c]n+ ov]"t m1l all[.es &
reimburse;ts = m1l exp5ses 9curr$ 9 !
c\rse ( an employ]-sponsor$ reloc,n4
  ,new p>agraphs #i 6#ac replace ! -;ts
9 =m] p>agraph #b7e7 & reflect ! ,bill
;,c-#ah cl>ify+ am5d;t 6! p>agraph   #be
              ,,it-#eah;,r           b#e
#fg.a7#b77e7 excep;n4 ,? am5d;t cl>ifies
t ! food & 5t]ta9;t does n ne$ 6be (f]$
at ! busi;s site 9 ord] 6qualify =a full
deduc;n4 ,9 a4i;n1 new p>agraph #i
expla9s h[ ! excep;n 9 p>agraph
#fg.a7#b77e7 applies 6employ]-op]at$
re/aurants & cafet]ias4 ,new p>agraph
#aj cl>ifies t =! purposes ( ? p>agraph1
an employ] :o o3upies a numb] ( adjac5t
build+s may n"e!.s h m ?an "o 8"picul>
place ( busi;s0 if a3ess 6^? build+s is
re/rict$ = secur;y or op],nal r1sons4
,new p>agraph #aa provides "s examples (
tempor>y "w loc,ns t w g5],y 2 3sid]$ 8a
"picul> place ( busi;s40 ,new p>agraph
#ab describes s"eal o!r situ,ns t may or
may n qualify =! excep;n 9 p>agraph
#fg.a7#b77e74 ,new p>agraph #ac cl>ifies
t 9 ord] = an ev5t 6qualify = ? excep;n1
! employ] m/ ei provide ! food or
5t]ta9;t directly or make ! nec
>range;ts 6provide !m4
  ,new p>agraph #ad br+s =w>d ! -;ts 9
=m] p>agraph #c 3c]n+ p>agraph       #bf
              ,,it-#eah;,r           c#e
#fg.a7#d77a7 : provides t m1ls & b"eages
s]v$ & 5t]ta9;t 5joy$ :ile us+ c]ta9 =ms
( transport,n >e n subject 6! #ej@3p
limit,n4 ,x is cl>ifi$ t ? exclu.n does
n apply 6food & 5t]ta9;t 3sum$ or 5joy$
:ile travell+ 0%ip4
  ,new p>agraph #ae br+s =w>d ! -;ts 9
=m] p>agraph #d & new p>agraph #af 3ta9s
an example 6illu/rate ! op],n ( subsec;n
#fg.a7#c71 : d1ls ) m1l & 5t]ta9;t
exp5ses 9 ! 3text (a 3f];e1 3v5;n or
sem9>4
  ,new p>agraph #ag br+s =w>d ! -;ts 9
=m] p>agraph #e & cl>ifies t ! #ej@3p
limit,n al applies 6! co/ (a re/aurant
gift c]tificate4
  ,new p>agraph #ah is bas$ on =m]
p>agraph #f & n[ cl>ifies :at is m1nt 0!
^w 85joy;t40
  ,new p>agraph #ai 9cludes a numb] (
a4i;nal -;ts d1l+ ) claims = 5t]ta9;t
exp5ses1 s* z ! ne$ =a busi;s purpose &!
require;t 6ma9ta9 sub/antiat+ records4
,x al cl>ifies \r posi;n 3c]n+       #bg
              ,,it-#eah;,r           d#e
exp5ses : >e p]sonal 9 nature 9clud+ ^?
= escort s]vices4
  ,a numb] ( o!r *anges h al be5 made
6improve ! ov]all cl>;y & r1dabil;y (!
bullet94


















                                     #bh