Business Deductions
- Amortization
- Business Losses and Net Operating Losses
- Car and Truck Expenses
- Day-Care Services
- Depreciating Business Property
- Depreciating Your Car
- Domestic Production Activities Deduction
- Health Insurance Deduction
- Home Office Deduction
- Meal and Entertainment Expenses
- Organizational Costs and Start-up Costs
- Qualified Plan Awards
- Schedule C Expenses
- Section 197 Intangibles
- Should You Sell or Trade in Your Car?
- Start-up Costs
- Travel Expenses
More Tax Topics
- Business Structures
- Hiring Workers
- Retirement
- Top Tax Myths
- Per Diem Rates - IRS Publication 1542 Oct 2011 for Travel Within the Continental U.S (for employers who pay a per diem allowance to employees)
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Need Some Deductions for 2012?
Don't overlook these!
Updated for 2012
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Personal Travel Expenses
Shopping, sightseeing, viewing videos in your hotel room, and any other expenses for nonbusiness purposes are not deductible while on a business trip.
Expenses of a Spouse, Dependent, or Other Individual
Generally, if a spouse, dependent, or other individual accompanies you on a business trip their expenses are not deductible.
However, expenses for your employees or even nonemployees who accompany you on a business trip may be deductible under certain conditions.
Your Employees:
A deduction is allowed if the person is your employee and...
- that person's attendance serves a bona fide business purpose that would justify claiming a deduction had the person taken the trip on his or her own.
Non-Employees:
Even if the person is not your employee, a deduction for dining and entertainment expenses may be allowed for goodwill entertainment.
If a non-employee spouse, dependent, or other person accompanies you on a business trip for purely social reasons, you may deduct what the trip would have cost had you gone on the trip alone.
In other words, figure out the total cost of the trip for you and the other person then subtract any additional costs attributable to the other person's attendance.
Example:
- You're self-employed.
- You live in New York City.
- You maintain a home office which qualifies as your principal place of business.
- You attend a business-related convention in Las Vegas.
- Your spouse accompanies you for purely social purposes.
- You rent a double occupancy room for two nights at $175 per night ($350).
- A single occupancy room would have cost you $150 per night ($300).
You may deduct $300 for the hotel (2 x $150, the single occupancy rate). The additional $25 per night ($50) attributable to your spouse's attendance is not deductible.
Next:
Travel Expenses: Entertainment Expenses of Non-Employees
Related Links
- Domestic Per Diem Rates
- What Are Travel Expenses?
- Who May Deduct Travel Expenses?
- Items Included in Travel Expenses
- Tax Terms You Need to Know-Ordinary and Necessary Expenses
- Tax Terms You Need to Know-Tax Home Defined
- Tax Terms You Need to Know-Tax Home Example
- Tax Terms You Need to Know-Transient and Away From Home Test
- Entertainment Expenses of Non-Employees-Example
- Employee Travel Expenses
- Employer Error Reporting Travel Expense Reimbursement on Form W-2
- Employee Accountable Plan
- Commuting Costs
- When You May Deduct Commuting Costs
- Temporary Work Locations and Commuting Expenses
- Temporary Work Location-Example
- What if Your Expectations for the Length of Time to Work Changes?
- Professionals Traveling to Clients' Sites
- Business Conventions and Seminars
- Investment Conventions
- Video Tapes Received at a Business Discussion
- IRS Meal Allowance
- If Employer is a Relative
- Daily Meal Allowance Amount
- Travel Expense Records You Must Keep
- Transportation Industry Workers
- Claiming the IRS Meal Allowance
- Travel By Cruise Ship
- Business-Vacation Trips Inside the U.S.
- Business-Vacation Trips Outside the U.S.
Copyright © 2008-2013 Larry Villano. All rights reserved.