Small-business travelers can deduct the entire cost of flights, rental cars and hotels when they go on business trips. You can even count the incidental costs of being on the road, such as tipping the bellboy.
Eating out is the exception.
You can deduct only 50 percent of your meals while traveling. So when you are traveling, you might stay at the Four Seasons, but eat your meals at McDonald’s.
If you are meeting with clients at your office and order in lunch, the expenses is “directly related” to conducting business and thus 50 percent is deductible. However, if you simply forgot to make your lunch and bought something at a restaurant or deli, the expense does not meet IRS standards and thus would not be deductible.
During the holiday season, client gifts to clients and employees are 100 percent deductible, but only up to $25 per person per year. (If the figure seems low, you are correct; it has not changed in five decades.) However, does not apply if send a gift to an entire company, rather than a particular individual. Company gifts are deductible for larger amounts if they are “reasonable.”
If you need money for your 2013 tax bill, Biz2Credit can help you get it. Call (877) 861-2210 toll free.