Tax Tip 19 of 32, You can take advantage of specific tax breaks
Deduct your room and board
Are you an athlete living away from home and playing for a team? And are you sponsored by a charity or a non-profit organization?
Then you can take advantage of specific tax breaks for board and lodging.
“Living allowances of up to $306 per month are tax-free,” explains Toronto Chartered Accountant John Bailey, “provided you meet certain conditions. You must be paid or sponsored by a registered charity or non-profit organization, and you must be under the age of 21.”
“Other significant restrictions are also in place,” cautions Bailey. “It is unclear what constitutes being ‘employed’, so be sure to check with your CA first to see how this might apply to you or to the young athlete in your family.”
This is effective for years ending after June 22, 2007. Unfortunately these breaks do not apply to coaches, referees, instructors and administrators.
Brought to you by the Institute of Chartered Accountants of Ontario.
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The Institute of Chartered Accountants of Ontario is the qualifying and regulatory body of Ontario’s 33,000 Chartered Accountants and 5,000 CA students. Since 1879, the Institute has protected the public interest through the CA profession’s high standards of qualification and the enforcement of its rules of professional conduct. The Institute works in partnership with the other provincial Institutes of Chartered Accountants and the Canadian Institute of Chartered Accountants to provide national standards and programs that are used as examples around the world. </em>
