CHAPTER 8Travel, Meals, and Gift Expenses
Technology has enabled small business owners to market their goods and services in a manner similar to that of larger companies and expand beyond the general area in which their office are located. To service these expanding markets, remote meetings via Zoom or otherwise may not be sufficient. You may have to travel to see clients, customers, vendors, suppliers, and others who are part of your business operations. If you do, you may be able to deduct a number of expenses.
Entertainment costs for clients, customers, vendors, and other business associates are not deductible, but wining and dining such people remains deductible as long as certain conditions are met. The ban on deducting entertainment costs does not apply to office-related events. Also, the cost of business gifts is deductible up to a set limit.
For further information about travel costs, see IRS Publication 463, Travel, Gift, and Car Expenses. Business use of your car for travel 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 ...
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