Tax Minute

SMALL BUSINESS OWNER TRAVEL EXPENSE

Most of our new clients that own small businesses want to deduct all of the expenses associated with any travel that they did for the year. This is a great way to get you in hot water with the IRS. Business travel expenses such as airfare, car rental, hotels and conference fees are 100% deductible against your business income. However, if you fly down to Florida with your family to spend a week at Disney and have a one hour meeting with a client that is located in Orlando, these expenses are not deductible as the primary purpose of this trip was for a family vacation. In this instance, you will only get to deduct the costs associated with seeing the client. However, if you had a week long conference in Orlando, and brought your family to the conference and they went on vacation while you were working, you would get to deduct your expenses for the trip in full while your families expenses would still be non-deductible. As always, any business related meals are only deductible up to 50% of the cost and due to the new tax law, entertainment costs are no longer deductible.

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