Larry's Blog Pages

December 7, 2009

Tax Breaks on Race Entry Fees

Just wondering if, or should, race entry fees be subject to tax breaks to help out all active Canadian residents?

The one area that I think they should qualify for sure is the portion that is put towards any charity donation by the race organizer. I realize the full entry does not go to the charities but there is usually a small component that is paid out per entry fee. This amount should be displayed on a receipt that the athletes could use at tax time and claim on the donation line of their income tax return. This would be a great start (if it is not already allowed?) and for most of us the small amount per race would add up over the course of the year.

I am sure I am not the only person to have these thoughts but when I put together my annual return (and a few other family member returns as well), I continue to see other items on the income tax forms that I would consider non-essential or specific to a very small population.

I know our kids are given special consideration for some of their activity fees but why not extend this into the later years. There are so many benefits to getting people off their butts as they age. Hopefully, the money the government would return into our hands would be off-set by the savings in the health care system thanks to more healthy people.

Another possible positive spin off would be the "role model" effect on kids. Assuming a large number of people actually use this as a motivating factor to become active, it may rub off on the youth and they too will follow in the healthier footsteps of the adults they have in their lives. I know my active lifestyle is brought up in the conversations of my 3 year old on a number of occassions. I am not going to push her into any of the sports I enjoy but there is a much greater chance that she will want to try something if her parents are participants.

Just a couple thoughts as I sit here icing after another late night run.

Happy training,


Anne said...

wHAT about the race fees for our children.. are they tax deductable



It would be open for interpretation, but I would say race fees would not qualify if you follow the government's definition of an allowable program.

From Revenue Canada website - Prescribed program
To qualify for this amount, a program must:
be ongoing (either a minimum of eight weeks duration with a minimum of one session per week or, in the case of children's camps, five consecutive days);
be supervised;
be suitable for children; and
require significant physical activity (generally, most of the activities must include a significant amount of physical activity that contributes to cardiorespiratory endurance plus muscular strength, muscular endurance, flexibility and/or balance).
For a child who qualifies for the disability amount, the requirement for significant physical activity is met if the activities result in movement and in an observable use of energy in a recreational context.

Physical activity includes horseback riding, but does not include activities where, as an essential component, a child rides on or in a motorized vehicle.
Reimbursement of an eligible expense – You can only claim the part of the amount for which you have not been or will not be reimbursed. However, you can claim all of the amount if the reimbursement is included in your income, such as a benefit shown on a T4 slip, and you did not deduct the reimbursement anywhere else on your return.



Also, here is the link to the Revenue Canada site for the child fitness tax credit.