J.K. Lasser's Small Business Taxes 2015: Your Complete Guide to a Better Bottom Line

CHAPTER 8 Travel and Entertainment Expenses

1. Local Transportation Costs
2. Travel within the United States
3. Foreign Travel
4. Conventions
5. Living Away from Home on Temporary Assignments
6. Meal and Entertainment Expenses
7. Business Gifts
8. Reimbursement Arrangements
9. Recordkeeping Requirements

 

Alert

At the time this book was printed, Congress had not extended numerous breaks for 2014 that had expired at the end of 2013. Check the online supplement in February 2015 at www.jklasser.com or www.barbaraweltman.com to see whether these breaks apply for 2014 returns.

Technology has enabled small business owners to market their goods and services in a manner similar to that of larger companies. For example, local radio advertising may expand the market for a small business beyond the general area in which its office is located. To service these expanding markets, you may have to travel to see clients, customers, vendors, suppliers, and others who are part of your business operations. If you travel on business or entertain clients, customers, or employees, you may be able to deduct a number of expenses, provided you follow special substantiation rules.

For further information about travel and entertainment costs, see IRS Publication 463, Travel, Entertainment, Gift, and Car Expenses. For a listing of per diem rates, see IRS Publication 1542, Per Diem Rates. Business use of your car for travel and entertainment purposes is discussed in Chapter 9.

Local Transportation Costs

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