 |
| Author |
 Topic  |
|
|
Carmen A
Member
Central, TX
USA
40 Posts |
 Posted - 04/06/2010 : 10:51:35 AM
|
| I planned a large road trip last week and traveled about 500 miles one way, doing shops the entire day. I left at 4:30 am and didn't finish "working" until after 6 pm. There was no way I could turn around and drive back. So I stayed in an inexpensive motel room (47.xx) and planned jobs the next day back a different route. Am I allowed to count the cost of the room as a business expense ?? I know I can count the milaege, but was unsure about the room. The only "pleasure" or "personal" part of the trip was supper that nite, so it was purely a business trip. |
|
|
Laura_In_Az
Star Contributor
Tucson, AZ
USA
262 Posts |
Posted - 04/06/2010 : 6:35:14 PM
|
| I would most definitely consider the overnight accommodations as a business expense, for tax purposes. I don't do road trips so haven't researched tax info re meals. That might be expensed also. All of the experienced Volition road trip people should be able to help you on that. |
 |
|
|
MindyZ
Star Contributor
Hesperia, CA
USA
412 Posts |
Posted - 04/16/2010 : 07:36:33 AM
|
Hello Carmen, as to hotels paid for by you, yes if you paid for it keep the receipt as long as it was not reimbursed by the company.
We just had our taxes done, our tax lady loves the way we keep our records (she only spends about 20 minutes doing our taxes)
If an employer uses a corporate card and then deducts it from your pay (by agreement) then you will need the receipt from the hotel as in most cases the employer will not send you a copy. This is not a bad arrangement as you can get a better rate for your room and your not putting the money out of pocket.
This is what we do:
If you are on the road, if you by a bottle of water, if you by food on the day you are leaving for the road trip, (we eat before we get home) keep the receipts as these are deductable.
All our receipts are kept in separate envelopes-office/rent (there are requirments that must be met by the IRS)-non reimbursed tools or supplies-hotels-gas-auto maintenance/repairs-phone bills - home (ours because of internet and faxes/reporting) cell (when we are working or on the road)-computer repair or purchase (as long as it's work related).
If you submit a receipt to your employer ALWAYS check your pay stub, if you got reimbursed you cannot claim it (deduct and write on the receipt as paid)
The more you keep track of your expenses and keep up on receipts you will not be talking to uncle.
When we go in for our taxes we have one list of the totals for everything we spent for the year, our tax lady just gets the numbers she needs and will sometimes go through the receipts for verification.
This year she got us a good chunk of change because of all the tax credits that are available, (hubby thought we would be paying, I knew we would be paying, her fee was worth the money) make sure your tax preparer is up to date on these credits, we're not going to Cancun or anything like that but we can get some tires for the car and do some maintenance for our next road trip.
MindyZ |
Mindy |
|
|
|
KentB
Member
Cordova, TN
USA
32 Posts |
Posted - 04/21/2010 : 07:52:03 AM
|
For meals on overnight trips there is another option that does not require you to keep all those receipts. From IRS Publication 463:
"You can figure your meals expense using either of the following methods:
- Actual cost
- The standard meal allowance"
This standard amount (also known as per diem) varies by destination city when you need to stay overnight on a business trip. For either method you only can deduct 50% of the cost. Last year, the daily rate in small localities was $39 for the first 3 quarters and $46 in the last quarter of the year. The rates are in IRS Publication 1542.
For both the day you depart and the day you return, you must prorate the amount and only claim three fourths of the published amount.
I find this method much easier for those infrequent overnight shops and the allowed amount is usually more than I actually spend.
Kent Burghard, Myster Shopper and Senior Tax Advisor
|
|
|
|
KentB
Member
Cordova, TN
USA
32 Posts |
Posted - 04/21/2010 : 6:40:10 PM
|
For meals on overnight trips there is another option that does not require you to keep all those receipts. From IRS Publication 463:
"You can figure your meals expense using either of the following methods:
- Actual cost
- The standard meal allowance"
This standard amount (also known as per diem) varies by destination city when you need to stay overnight on a business trip. For either method you only can deduct 50% of the cost. Last year, the daily rate in small localities was $39 for the first 3 quarters and $46 in the last quarter of the year. The rates are in IRS Publication 1542.
For both the day you depart and the day you return, you must prorate the amount and only claim three fourths of the published amount.
I find this method much easier for those infrequent overnight shops and the allowed amount is usually more than I actually spend.
Kent Burghard, Myster Shopper and Senior Tax Advisor
|
|
|
| |
Topic |
|
|
|
|
Follow Volition.com on Facebook.
click here
|
Can I count the cost of a Motel Room??