J.K. Lasser's Small Business Taxes 2017

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
10. Employees

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. Business use of your car for travel and entertainment purposes is discussed in Chapter 9.

Local Transportation Costs

Do you travel from your office to see clients or customers? Do you have more than one business location? Do you have an office in your home but go into the field to transact business? If the answer to any of these questions is yes, you may be able to deduct local transportation costs. More specifically, local transportation costs include the cost of work-related ...