Mixing Business With Pleasure Travel
The Company may deduct travel, lodging and 50% of meals incurred in attending a convention or seminar in the US that benefits your business (excludes investment, political or social events). The primary purpose of the travel must be attending a business event. For example: if a business event lasts 4 days and you extend the stay 2 personal days, the primary purpose of the trip is business and you can deduct all travel, lodging and meal expenses for the 4 days. Generally, expenses for spouses and dependents are not deductible. (Expenses would be deductible if they were Company employees and there was a business purpose for them to attend the business event). Recreation and entertainment expenses on the trip are generally not deductible. For record keeping purposes, we suggest you charge your business expenses to a Company credit card and pay nondeductible expenses in cash or with a personal credit card. A schedule should be made of the business days attended, including event hours and personal days. Remember to separate meals and entertainment from other expenses since they are only 50% deductible. In order to make the most of travel where pleasure is involved, schedule a business trip which is part personal over a weekend. By working on Friday and Monday, you can now deduct the lodging costs and 50% of the meals for the entire trip, including the weekend. What previously would have been nondeductible personal costs become deductible. Conventions and seminars outside the US require more documentation to be tax deductible. If you questions concerning business and pleasure travel, please feel free to contact us.