| As a general rule, the costs of commuting between your home and workplace
are not deductible. However, if you can prove that your home office is
your "principal" place of business, the cost of travelling from
your home to your customers is deductible.
- If you travel away from your "tax-home" for more than one
day, all business-related expenses are fully deductible-airfare, taxi,
parking, lodging, entertainment, and incidentals, EXCEPT meals, which
is 50% deductible. You must be able to prove it was business-related
and bookkeeping records must indicate the length of stay, city &
state where you traveled, and reason for travel. And, it must be within
reason. I must note that the "standard" daily meal allowance
here in Wisconsin is $34/day. The meal allowance varies between different
cities in different states. (Your bookkeeper and accountant will need
to know the detailed information, if you use a bookkeeper and an accountant.)
- For Travel to Conventions-If the convention is related to the active
conduct of your business, meals are 100% deductible.
For tax purposes, Travel & Entertainment expenses are recorded on
Schedule C of the IRS tax forms.
|
