Daniel Cullinane CPA
25 Plaza 5 25th fl Jersey City NJ phone 732-516-1648 fax 732-516-9778
You can deduct the costs incurred in traveling away from home on business(including 50% of meals and 100% of lodging ) and costs for local transportation on business.
TRAVEL EXPENSES IN PURSUIT OF A TRADE OR BUSINESS
Travel expenses ( including meals lodging and other defined incidentals) are ordinary and necessary costs you ring up while traveling away from home on business. These expenses include
Meals (subject to the 50% rule) and lodging both in route and at the destination
Air rail and bus fares and baggage charges
Cost of transporting sample cases
Expenses for sample display rooms
Cost of operating and maintaining a car
Cost of maintaining an airplane including depreciation on the airplane hangar
Reasonable cleaning and laundry expenses
Telephone and fax expenses
Cost of a public stenographer
Cost of transportation from an airline train or bus terminal to the hotel and back
Reasonable transportation costs between restaurants or hotels and temporary work sites
Tips and other incidental travel expenses
TRAVEL EXPENSES AND INCOME PRODUCTION
You are entitled to write off ordinary and necessary expenses that you incur to produce or collect income, to manage ore maintain income producing property or to calculate or collect a tax refund. If you take a cab to your broker's office, you can deduct the fare
INVESTMENT SEMINARS AND CONVENTIONS
The tax law prohibits deductions for the costs of attending conventions, seminars or similar meeting for investment or income producing purposes unrelated to your trade or business.
TRAVEL AS A FORM OF EDUCATION
Tough restrictions are imposed on deducting he cost of so called educational trips. For example a Spanish teacher who uses his summer vacation to travel to Spain to improve his knowledge of the culture and language may not deduct his travel expenses. However an anthropologist can deduct the cost ot traveling to Egypt to study ruins as long as the research is part of her job.
EXPENSES TO SEEK NEW EMPLOYMENT
These expenses are deductible as long as you are looking for a job in your current line of work.
NEW BUSINESS LOCATION
You cannot deduct your travel cost for scouting new locations for your business, plant or branch. Nor can you write off travel expenses for seeking locations for a brand new business or start up. In both cases, these travel expenses must be capitalized and added to the cost of the new property. You can depreciate the property later. Note, though that the cost of an unsuccessful attempt to acquire a specific business generally is deductible
SEEKING FOREIGN MARKETS FOR EXISTING PRODUCTS
If you travel abroad to seek foreign markets for existing products, you may deduct reasonable travel costs while you are away from home. Entertainment expenses are not part of the cost of traveling, even if you incur them while away from home. They must be handled according to regulations that govern entertainment expenses.
MEALS AND LODGING WHILE TRAVELING
You can deduct half the cost of your meals and all your lodging expenses only if you are away from home in connection with your trade or business. Home for tax purposes is not always the place where you maintain your family residence.
DEFINING HOME FOR TRAVEL PURPOSES
For travel purposes home is your place of business, your employment station or your post of duty, no matter where your family lives. That is the rule issued by the IRS. The courts have upheld the rule, although the Tax Court occasionally has held that a particular taxpayer's residence was his tax home
2500 Plaza 5 25th fl Jersey City NJ 07311 phone 732-516-1648 fax 732-516-9778
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