pope33[at]speedymail.org (Steve Pope) wrote:
- quote -

If you spent $1000 on a airline ticket, you wouldn't bill
that to your client? Either your clients are all local or
you charge very high rates :-)

--
Vic Roberts
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Lanny K Williams CPA <lanny[at]expatriatetax.net> wrote:

- quote -

Hmm. I don't see whether the client reimburses it figuring
into whether it's a valid business expense. Usually, I
do not bill my clients for travel costs yet I enter them
on my Schedule C.

Steve

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pope33[at]speedymail.org (Steve Pope) wrote:
- quote -

I'm now a C Corp so I don't use Schedule C.

However, on the question of meals - I have two meal
categories. One is reimbursed meals and the other is
unreimbursed meals. Unreimbursed meals include meals for
overnight trips that I pay for myself - for example to
attend professional conferences. Reimbursed meals are meals
that are reimbursed by my clients for overnight trips.

I file detailed expense accounts with a clients that break
out the actual cost of meals and other expenses. They then
reimburse me for my travel per the submitted expense
account. In this manner the funds received for reimbursed
meals are deductible at 100% instead of 50%.

I usually don't do non-overnight trips.

--
Vic Roberts
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AES wrote:

- quote -

To be deductible, expenses must meet two requirements: a)
they must be ordinary and necessary, and b) they must not be
lavish or extravagant.

I see no problem with the ordinary and necessary
requirement. If the client is located in another city, you
obviously must travel to that city.

I doubt if there would be much question about lavish or
extravagant, either, although it could be an issue. This is
one of those "facts and circumstances" situations that
depend on the specific case. Time and distance traveled
could be factors. Also, the amount of the fee to be earned
in relation to the travel costs might influence a revenue
agent.

For example, if the client won't reimburse more than coach
fare and the upgrade costs as much, or nearly as much, as
the fee to be paid, it could be considered extravagant.

On the other hand, if you're built like a 300 pound football
guard, you may have to fly in business or first class.

Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans

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Victor Roberts <xxx[at]lighting-research.com> wrote:

- quote -

On your schedule C, report what your client reimburses
you for travel as revenue, and report the full cost of
the travel as an expesne. These two numbers do not have
to be related in any particular way but they both have
to be reported.

Tax rules regarding business travel deviate significantly
from most company reimbursement policies. For example,
meals consumed during non-overnight business travel
cannot be an expense on your schedule C, but most companies
reimburse them -- so that counts as income.

Steve

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"Frank S. Duke, Jr." <dukefs[at]one.net> wrote:
- quote -

There was never any question in my mind that we were talking
about real business travel. I travel a fair amount in my
business as none of my clients are local. My clients always
pay for Business Class on trips to Europe and Asia. I could
not go to work as soon as I arrived if I had to fly in
coach. I live on the east coast and trips to California are
often First Class, but most often full fare coach upgraded
at no cost to First.

--
Vic Roberts
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Victor Roberts at xxx[at]lighting-research.com wrote:

....
- quote -

The key criteria is whether this expense is "ordinary and
necessary", assuming of course that you business makes a
profit or intends to do so in the reasonable future. The
only "luxury" travel that is limited is travel by ship. I
would say take it as long as the trips are really for
business.

All freely provided advice guarantee correct or double your
money back

Frank S. Duke, Jr. CPA
Cincinnati, OH USA

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ES <siegman[at]stanford.edu> wrote:

- quote -

Well, I can't give you the legal answer since I am just
another consultant, not a tax pro like some of the folks
here. But my take is that the extra expense would be
deductible as a business travel expense on your Schedule C.
After all, some of your clients probably reimburse you for
Business or First Class air travel, and the funds they use
to reimburse you are deductible to them. If so, why should
your own business not be able to deduct First or Business
Class fare if you pay the whole thing, or the excess over
what your client pays if they pay only for Coach?

--
Vic Roberts
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AES wrote:

- quote -

I'm with you. When I fly I could go first class easily, AND
btw, deduct it if business related.

But I've got too much Scotch in me do do that. Well, what I
mean is...... it's not happy hour; yet!

ChEAr$,
Harlan Lunsford, EA n LA

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Retired professor/independent consultant, do a modest amount
of consulting each year. At this stage in life (mid-70s),
damned if I'll fly steerage class any more.

If one of my client organizations by policy will only pay
for coach class and I pay the difference for Business Class
out of my own pocket, I trust that's a deductible business
expense on my Schedule C . . . ???

(Please don't tell me otherwise! -- or rather, tell me if
you have to, but I won't welcome the news.)

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