I work in different project locations away from my principle residence and receive a tax free allowance to cover the costs of my travel home and my daily expences while away from home.The allowance varies from project to project and the time frame varies from project to project.

Does this LOA need to be reported as income/asset if I declare bankruptcy considering it is strictly for the purpose of covering unsolicited expenses created by my company posting me to distant work sites?

The living allowance would need to be reported monthly on your Statements of Income and Expenses but would net out against the costs incurred traveling to site and the expense of being there. Your Trustee would explain exactly how to report the income/expenses.

Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca