Small Business Owner Travel And Entertainment Tax Deductions (2019)

Small Business Owner Travel And Entertainment Tax Deductions (2019)

You took a few trips last year and now that it’s taxes time, you’re deducting all of your travel expenditures because it’s all cool, it’s all business, right? You’d better watch it. A few of your travel and entertainment expenditures may not be as deductible as you think – and there are a few twists to the guidelines that may impact your tax bill.

Here are some examples directly from IRS Publication 463, “Travel, Entertainment, Gift, and Car Expenses,” which addresses this type of thing. If you (and your employees) are using the IRS’s standard mileage reimbursement rate to deduct expenditures for travel outside of the standard commute, you may be taking an excessive amount of a deduction.

Every 12 months we’re used to the pace going up. However in 2017 … it went down. Season the speed was 54 cents per mile Last. This season it’s 53.5 cents per mile. It’s likely the low cost of gasoline. To determine whether you are touring abroad, you must determine the positioning of your tax home first.

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According to Publication 463, generally, your taxes home is your regular place of business or post of responsibility, no matter where you maintain your family home. When you have several regular place of business, your tax home is your main place of business. If you don’t have a normal or a main place of business because of the type of your projects, then your tax home may be the place where you regularly live. Sure, you’re using the motor car to go to a customer in Nashville.

But are you going for a little side trip to check out Andrew Jackson’s Hermitage for a day? Healthy. You’ll learn just a little U.S. But you better not deduct the cost of your local rental car because that was a non-business use. You are doing all of your own laundry and iron your t-shirts while at home. But c’mon … you’re on the baby and road, it’s time to live it up.

Go for the platinum. Get those t-shirts dry-cleaned. Get a undergarments washed. The cost is deductible. Because it’s “business” doesn’t imply it’s totally deductible. The IRS provides its auditors the leeway to determine if a business expenditure is “lavish” or not – and the definition is available to interpretation.