Business Travel Expenses

Taxpayers and the IRS have disagreed on the deductibility of travel expenses many times. If the trip is primarily for business, then most of the expenses are deductible such as meals, lodging and transportation costs. How does one determine if the trip is primarily for business? You have to look at all the facts and circumstances and see if you can make a reasonable case. How much time was spent on personal activities versus business activities? Was your spouse with you? Does your spouse have a legitimate business reason to be on the trip? Is your spouse one of your employees or independent contractors? If the trip is primarily for personal reasons, then no costs are deductible except direct business expenses such as a business meal. This issue reminds me of an old tax saying, "When a pig becomes a hog it gets slaughtered."