How To Handle LOA Expenses Through Your Corporation

Managing LOA expenses can be complex, especially when you operate as the sole employee of your corporation.

While these allowances are designed to cover costs incurred while working away from home, the rules around deductibility, documentation, and compliance can be nuanced. In this article, Brennen A. Giroux, Partner at Crowe MacKay LLP, breaks down practical strategies and key considerations to ensure your LOA expenses are handled correctly—helping you stay compliant while maximizing tax efficiency.

When you're working out of town, you can record LOA expenses either by:

1. Using CRA's simplified method – this allows you to estimate daily amounts (e.g., $69/day for meals and lodging) without keeping receipts.