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What expenses can I claim for travel, meals and entertainment ?

Business travel is a specific term determined by the IRS to describe travel away from your tax home that is "substantially longer than an ordinary day's work" and that requires you to sleep or rest while away from home.

You must also sleep away from home to be able to deduct these costs. The travel must also be "temporary" (lasting less than a year).

What You Can Deduct for Business Travel Away From Home

You can deduct costs to travel by train, bus, or airplane between your tax home and your business destination.

Meals and Entertainment

The following table outlines different activities and expenses, and provides general guidelines on the way the TJCA laws impact meals and entertainment expenses:


Examples of Meals and Entertainment


Guidelines


Business Entertainment Trips or Events (sporting events, concerts, fishing trips, country club dues, movies, etc.)


Nondeductible


Tickets to Charitable Events


Nondeductible


Business Meals (with associates, clients, customers, or prospects)


Nondeductible


Employee Travel Meals


50% Deductible


Meals for Business Leagues (Chambers of Commerce, Boards of Trade, etc.)


50% Deductible


Meals for Meetings (with employees, stockholders, agents, or directors)


50% Deductible


Meals Provided for Convenience Of Employer


50% Deductible


Employee Events (holiday parties, summer outings, and other social/recreation activities)


100% Deductible


Office Snacks & Beverages


100% Deductible



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