Travel & Entertainment

No. There are 2 limitations that come in play. The deductible amount taken as an entertainment expense for tickets is the face value of the tickets. The excess amount paid to a ticket agent or scalper is not deductible. Secondly, all meals and entertainment expenses are limited to 50% of the cost. The deduction will be claimed on the business Schedule C Form or Form 2106. You should maintain a diary of all business expenses listing the person, the event, the date and the business agenda that was discussed.

Yes. If a business discussion occurs before, during or after the meal, then the costs of entertaining clients or business customers at your home is deductible. You should always keep a business diary listing the location, customers' names, business discussed and the date to substantiate your business expenses.

Automobile license fees paid based on the cars year, model weight or horsepower are not deductible. Automobile license fees paid based on the value of the car "ad valorem" are deductible property taxes on IRS Schedule A. If you live in one of the following "ad valorem" states contact your local CPA to verify the deductibility:

No. Cruise ship costs are limited to twice the highest per day rate for travel in the U.S. on that date, multiplied by the number of days in transit.

Yes. While away from home on business trips, if you find it difficult to maintain the actual records of meal costs, you may use a standard IRS meal allowance. The basic meal allowance in the U.S. for the current year is $52 a day. There are higher high-cost major metropolitan area rates available. You must keep a diary which includes the time, place and business purpose of the trip. Speak to your local CPA for the meal allowance in your area in your state. The rates are available online at www.gsa.gov/perdiem and in IRS Pub 1542.

The travel from one job location to a second job location is deductible. The travel from your home to the first job location and from your second job location returning home is considered commuting and not deductible. For the current year you are allowed 55.5 cents per mile for business miles driven, which would be claimed on Schedule A as a miscellaneous itemized deduction subject to the 2% limitation.

No deduction is allowed for costs of travel claimed as a form of education to maintain familiarity with the country's culture or language or customs.

Yes. If the courses qualify as deductible educational expenses to improve and maintain your job skills, then the local transportation and travel away from home are deductible. The costs of transportation from your job to school is fully deductible and from school back home is deductible only if school is considered to be on a temporary basis (school will last 1 year or less is temporary basis). The deductible educational expenses will be taken on Form 2106 or on Schedule A, as a miscellaneous deduction subject to the 2% limitation.

In general the costs of commuting between a taxpayer's home and work location are non-deductible personal expenses. There are exceptions to this rule for commuting to a temporary work location.
If you purchase an auto that you use for work (i.e. a salesman)you may claim the actual unreimbursed expenses or the IRS mileage allowance, whichever is higher. The expense is claimed on IRS Form 2106.
There are limitations on the actual expenses that may be taken each year. In the current year, the standard mileage rate is 56.5 cents per milefor business miles driven.
The maximum first year actual depreciation deduction is $11,160 if bonus depreciation claimed. Speak to your local CPA if you are commuting to a temporary work location or need guidance in your first year actual verses mileage expense election.