Table of Contents
Generally not. Usually, you can only deduct costs of meals when you're away from home overnight, or as part of business-related entertainment.
Even when deduction is allowed, it's only to the extent of 50% of the meals costs and related tips.
It depends. If you give your employer a detailed expense accounting, return any excess reimbursement, and meet other requirements, you don't have to report the reimbursement-and don't deduct the expenses.
This means that any deduction limits are imposed on your boss, not you, and the 2% limit on miscellaneous itemized deductions won't affect your travel, entertainment and meals costs.
There are no dollar limits. Expenses must be "ordinary and necessary" (meaning appropriate and helpful) and not "lavish or extravagant", but this doesn't bar deluxe accommodations, travel or meals.
Deduction for business entertainment and business meals can't exceed 50% of the cost.
There are additional special limitations on skyboxes and luxury water travel.
Yes. Living expenses at the temporary work site are away from home travel expenses.
An assignment is temporary if it's expected to last no more than a year. If it's expected to last more than a year, the new area is your tax home, so you can't deduct expenses there as away from home travel.
A wide range of expenses can be deducted while traveling away from home.
Here are the main ones:
The following travel expenses cannot be deducted:
There are various conditions and limits for deductions for business and entertainment.
If you're an employee who is reimbursed for expenses you'll need to file and expense report for your employer, which is a written accounting of your expense while on travel. If you received a cash advance, you'll also need to return to the employer any amounts in excess of your expenses.
Some per diem arrangements and mileage allowances-called "accountable plans"-take the place of detailed accounting to the employer, if time, place and business purpose are established.
Where expenses aren't fully reimbursed by your employer, or excess reimbursements aren't returned, detailed substantiation to IRS is required and, if you're an employee, your deductions are subject to the 2% floor on miscellaneous itemized deductions.
In addition, your expense records should be "contemporaneous", that is, recorded close to the time expenses are incurred.
Small Business: Frequently Asked Questions
Choosing a Professional: Frequently Asked Questions
Employee Benefits: Frequently Asked Questions
Recordkeeping: Frequently Asked Questions
Marketing and Pricing: Frequently Asked Questions
Business Forms of Organization: Frequently Asked Questions
Incorporating: Frequently Asked Questions
Limited Liability Companies: Frequently Asked Questions