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Ugh - Tax question - Business Travel & Meals
Posted by: mattkime
Date: February 12, 2006 06:18PM
I hope someone can verify this for me -

When traveling on business, meal costs are deductible at 50% of their value.

Yes, it seems simple but it can be hard to find straight info on this.
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Re: Ugh - Tax question - Business Travel & Meals
Posted by: Guitarman
Date: February 12, 2006 07:00PM
I thought they were 100% deductible.



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Re: Ugh - Tax question - Business Travel & Meals
Posted by: mattkime
Date: February 12, 2006 07:16PM
I haven't seen anything that says that directly.

I'm very certain that business lunches local to where you work are only 50% deductible, but if you're on the road it seems different rules may apply.

I tell you, the IRS and the accountants are in bed together. Kind of like the candy and dental industies - but at least candy is sweet.
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Re: Ugh - Tax question - Business Travel & Meals
Posted by: wurm
Date: February 12, 2006 07:25PM
I still think we should abolish the IRS.
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Re: Ugh - Tax question - Business Travel & Meals
Posted by: Guitarman
Date: February 12, 2006 08:25PM
Nope, I think business lunches are 100% deductible up to a certain cap. The theory is, if it weren't for the necessity of impressing you lunch date, you'd be brown bagging it instead and eating a cheese sandwich in the office.



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Re: Ugh - Tax question - Business Travel & Meals
Posted by: JoeBob
Date: February 12, 2006 08:43PM
When I was traveling, all meals on the road were 100%, I am pretty sure.
I would have to verify that with my accountant, though.
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Re: Ugh - Tax question - Business Travel & Meals
Posted by: graylocks
Date: February 12, 2006 08:58PM
it's 50%. has been for a number of years now.

it doesn't matter if it's local or travel. i've filed this every year for the last twenty.
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Re: Ugh - Tax question - Business Travel & Meals
Posted by: wurm
Date: February 12, 2006 09:16PM
Doesn't it have to do with whether you're just feeding yourself or "entertaining" a client?
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Re: Ugh - Tax question - Business Travel & Meals
Posted by: threeprong
Date: February 12, 2006 09:24PM
If the meakl is scheduled to accomodate business before after or during.. it's deductible.

Even if your client has already eaten and doesn't order. =D


3p
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Re: Ugh - Tax question - Business Travel & Meals
Posted by: graylocks
Date: February 13, 2006 10:34AM
wurm Wrote:
-------------------------------------------------------
> Doesn't it have to do with whether you're just
> feeding yourself or "entertaining" a client?


Travel meals AND Business Entertainment are 50% deductible.






Edited 1 time(s). Last edit at 02/13/2006 12:43PM by graylocks.
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Re: Ugh - Tax question - Business Travel & Meals
Posted by: Mike Sellers
Date: February 13, 2006 12:08PM
Always been 50% for me.

I guess the IRS reasoning is that you have to eat anyways so there's no way it should be 100% deductable. Unless you're fasting, they're probably right.



Edited 1 time(s). Last edit at 02/13/2006 12:10PM by Mike Sellers.
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Re: Ugh - Tax question - Business Travel & Meals
Posted by: Gyrene
Date: February 13, 2006 02:42PM
From the IRS web site:


For business travel, are there limits on the amounts deductible for meals?

Meal expenses are deductible only if your trip is overnight or long enough that you need to stop for sleep or rest to properly perform your duties. The amount of the meal expenses must be substantiated, but instead of keeping records of the actual cost of your meal expenses you can generally use a standard meal allowance ranging from $30 to $51 in 2004 depending on where and when you travel.

Generally, the deduction for unreimbursed business meals is limited to 50% of the cost that would otherwise be deductible.

For more information on business travel expenses and restrictions, refer to Tax Topic 511, or Publication 463, Travel, Entertainment, Gift, and Car Expenses, and Publication 1542, Per Diem Rates .

References:

Publication 463, Travel, Entertainment, Gift, and Car Expenses
Tax Topic 511, Business travel expenses
Publication 1542, Per Diem Rates
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