A common question asked by most of our clients are those of allowable deductions for business travel. Here is a general outline of business travel deductions
Question: For business travel, are there limits on the amounts deductible for meals?
Answer is
* Meal expenses are deductible only if your travel requires you to be away from home over night or if the meal is business-related entertainment.
* You can figure all your travel meals expenses using either of the following methods:
1. Actual cost. If you use this method, you must keep records of your actual cost.
2. The standard meal allowance which is he federal M&IE rate. These rates are listed in Publication 1542.
* The deduction for unreimbursed business meals may also be subject to a 50% limitation.
A good tax preparer can give you other helpful hints.