Foolish is the keyword here.My husband recently incorporated his business; he is a manufacturer's sales representative. We do have an accountant, but his answers on these questions are still unclear to me. We are having a hard time interpreting the rules applying to his travel expenses, especially meal expenses. Meal types include: eating at Burger King on the way to a meeting, lunch meeting with customers present, lunch meeting with another salesperson on the way to a meeting, eating at the hotel alone the night before a morning meeting . . . As far as I can tell, some expenses are not deductible, some 50%, some 100%. Can you break down the rules for us?Also, when one of his contract employees (1099) submits telephone/mileage/meal expenses for calls he has made, the company reimburses him in full. Should we only be reimbursing based on the percent deductible? For example, 50% of his meal alone on the road? I work for a large company, and when I travel I put everything on my expense report: meals alone, meals with coworkers, meals with customers, and I am reimbursed for all of it. Is my company eating the tax consequences? Is this going to show up and surprise me on my W2? Should we(is it normal to) add these expenses, or the non-deductible portion, to our contractor's 1099?Thanks for any and all help! We will verify our understanding with our accountant (or a different accountant), of course!JoElly
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