03 Dec 2012

Fun Tax Fact #4:

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Air miles can fly as non-taxable benefits.

Frequent flier rewards earned from business trips and redeemed for personal or family purposes are taxed as regular earnings. However, the CRA allows an overall $500 exemption for non-taxable gifts and rewards, which can include job-related air miles. Self-employed persons can enjoy full tax-free rewards by applying their air miles strictly towards business expenses.

Source: Creditcards.ca