Business Travel Meals

The IRS only allows a 50% deduction for meals associated with business travel. This includes food, beverage, tax, and tip. However if you get reimbursed for the meals by a client or your employer through an invoice where you specifically bill for the meals or an expense report where you  account for the meals, then the meals are not subject to the 50% deduction. The 50% limit will only apply to the final payer of the expenses. If your expenses were reimbursed then they cannot also be deducted.

Head of Household Filing Status

The head of household filing status puts you in a lower tax bracket than filing single so it is a desirable way to file your tax return. What qualifies you for this status? There are 4 conditions: 1. unmarried at year end, 2. U.S. citizen or resident, 3. you paid more than one half of the cost of the home, and 4. your child or dependent lived in your home for more than one half of the year. In a divorce situation, the custodial parent can still file as head of household even if they have given up the right to claim the exemption for the dependent to the noncustodial parent.

Travel Costs

If you have rental property in another state and you take a trip to check up on it, is the trip tax deductible? Yes it is. The cost of travel for the management or conservation of investments is deductible per the IRS. If you drive to your broker's office to go over your portfolio, that trip is also deductible. Make sure you keep up with the mileage. However going to a shareholder's meeting (except for a proxy fight) or an investment seminar is not deductible.