Legal: Need Deductions, Will Travel

Scrounging for this year's receipts for travel-related business expenses? Before you hunt through every file, knowing which expenses are deductible can save you a lot of time. From airfare and miles to tradeshows and cruises, Michael L. Antoline explains the basic rules for deducting expenses in his Legal Pad column appearing in the November issue of DAYSPA. Deductible travel expenses generally include "transportation by airplane, train, bus or car to and from your destination; taxi, commuter bus and airport limousine; baggage and shipping; car rental; lodging and meals; dry-cleaning and laundry; and telephone and tips," Antoline writes.

Here's a cheat sheet from Antoline's column, which will give you more time to organize the rest of your returns.

• Multiple Spa Locations
  If you're a spa owner with multiple locations in the same city, Antoline warns it will be difficult to justify travel expenses. However, overnight travel is usually justified for spa owners who have locations in different cities.
• Meals
  Meals are deductible when "it's necessary for you to stop for substantial sleep or rest to properly perform your duties," Antoline writes. Also, keep in mind that the IRS will only reimburse half of your total meal expenses.
• Miles
  Mileage reimbursement for business-related travel is currently 50.5 cents a mile.
• Trade Shows
  Expenses related to travel and attendance of trade shows are deductible as long as you can prove they will "help you better manage or improve your business," Antoline says.
• International Travel
  Business-related travel expenses outside North America aren't always deductible. To determine which expenses qualify, the IRS has established the following contingencies: The event must be related directly to your business, and it must be as reasonable to hold the meeting outside of the North American area as within it. If that sounds confusing, you're in good company. "What does the later prong mean? I haven't a clue," Antoline writes. "Let's just say it depends on the purpose of the event, the activities and the nature of the sponsoring organization."
• Cruises
  Expenses from business-related cruise events are deductible as long as you satisfy two requirements. First, cruise ships must be registered in the United States, and ports of call must be located in the United States or its possessions. Second, you must submit a statement to the IRS that includes length of trip, hours designated for business activities, and a program of scheduled events.




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