Pit & Quarry, February 2014
bursed meal costs can be deducted If an employee is reimbursed for the cost of meals how the 50 percent limit is applied depends on whether the employers reimbursement plan was accountable or non accountable If there is no reimbursement the 50 percent limit applies regardless of whether the unreimbursed meal expense is for business travel or business entertainment The actual cost of meals can be used to figure the amount of the expense before reimbursement and application of the 50 percent deduction limit If this method is used records must be kept of actual costs The Incidental Expenses Only method is an option that can be used for deducting only incidental expenses instead of actual cost The amount of the deduction is only 5 a day and can be used only if no meal expenses were paid or incurred Thus this method can not be used on any day that the standard COUNTDOWN TO CONEXPO CON AGG 2014 meal allowance is used Whats more this method is subject to proration for partial days Generally managers employees and especially partners shareholders and the owners of aggregate businesses can deduct the cost of traveling away from home on any business trip This includes the cost of convention related transportation lodging meals and incidental expenses Meal and entertainment expenses are subject to a 50 percent limitation New rules recently proposed by the IRS would allow those attending conventions or trade shows locally except the self employed to deduct the cost of local lodging as long as it is businessrelated That means the expense of staying in town while attending a local trade show convention seminar or meeting can be tax deductible or ignored for tax purposes if paid for by an employer Travel expenses are among the most common business expense deductions However this type of expense is also one of the most confusing Obviously familiarity with the tax rules will make it easier to plan any business trip especially one combining business with vacation and to reap the reward of a legitimate tax deduction P Q Mark E Battersby is a freelance writer who has specialized in taxes and finance for the last 25 years Becoming familiar with the tax rules will make it easier to plan any business trip especially one combining business with vacation and to reap the reward of a legitimate tax deduction www pitandquarry com February 2014 PIT QUARRY 67
You must have JavaScript enabled to view digital editions.
