Message Font: Serif | Sans-Serif
No. of Recommendations: 0
This is a little off topic since it deals with the expenses I incur in my consulting work, but I was hoping that my fellow Fools would cut me a little slack since there are bound to be numerous other Fools in a similar predicament.

In my business, I regularly travel out of town on business. It is clearly business since I am actually performing income-producing work in my client's office. It is also clearly outside of my tax home since it is often in another state. My travel expenses are therefore deductible (Pub 463).

My question concerns my meals while traveling. Are my meals while traveling still subject to the 50% limit? I would think that since I am traveling overnight that the meals would be a legitimate expense (provided they are not classifed as lavish or extravegant), but I did not get that impression from Pub 463 or the help in TurboTax (please, don't flame me, I ALWAYS recheck all the numbers). If I opt to use the Meals and Incidentals Expense allowance ($38 per day where I traveled recently) instead of keeping track of actual expenses, is that, too, subject to the 50% limitation meaning that I can only deduct $19 per day as a meal expense?

If I incurred these expenses in my tax home, I can see where the 50% limitation would reasonably factor in. But overnight travel outside my tax home, in my opinion, should qualify me to take the entire deduction, NOT subject to the 50% limitation.

Please share your thoughts/experiences with me.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.