Q&A - Business Expenses and Tax Deductions

Question


My accountant recently told me that I could not deduct my expenses to a business convention in Las Vegas because I spent one of the days there doing personal sightseeing and only conducted business for two days while I was there. I think I can deduct the expenses. Please help, as this will cost me a lot of money.

Tom T., Seattle, WA

Answer


Tom– you are in luck, as all of your travel expenses are deductible, with the exception of any amounts you spent while sightseeing (these are personal expenses and are not deductible).

All of your travel expenses (airfare, hotel, meals/entertainment, seminar/convention fees, and local transportation would be deductible, but not the gasoline or meals for your sightseeing activities).

The basic rule is that your trip must be primarily for business (attending the convention was the main purpose and not sightseeing), and you must spend more time for business than pleasure on your trip. For purposes of determining how much time is business related, your travel each way counts as business days.

In addition, you should spend at least four hours each day while you are at the convention doing business in order to make these days count as business days. If you satisfy these rules, there is no reason why you cannot claim your travel expenses.