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post #1 of 5 Old Mar 22nd, 2008, 8:25 am Thread Starter
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IRS TAX Question

IRS - Tax Expert answer needed.... I am semi-retired and have a preventive health care business (network marketing that I run out of my home) and weekly talk to and acquire customers at different types of fun activities. I.E., I might be on a week long SCUBA trip or a 3 day skydiving event and in conversation acquire new customers. The purpose of the trip was fun, but business transpired. I market a product that lowers cholesterol naturally and customers are also guaranteed to loose fat.

QUESTION: Can I deduct the trip expenses (travel/meals/hotels) as business expenses? Maybe a % of them? I'm not looking for an audit and don't want to be unreasonable, but if the IRS looks at these as legitimate expenses, I'd like to deduct them.

Dano
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post #2 of 5 Old Mar 22nd, 2008, 8:52 am
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Re: IRS TAX Question

Dan: My Turbo Tax says a % of the business expenses. I'm no tax expert but when I had my own business...the Business expenses tuturials within Turbo Tax answered all my questions.

Wish I could assist more!

v/r

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post #3 of 5 Old Mar 22nd, 2008, 9:20 am Thread Starter
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Re: IRS TAX Question

thanks, I'll check out their site. I was planning to do my taxes this year electronically and Turbo was on the list to try. Previous years I've purchased the software, but I'm thinking of doing them with the browser application.
Question now is what % ?

I did my sisters with the Turbo browser application and it was pretty easy.

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post #4 of 5 Old Mar 22nd, 2008, 11:48 am
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Re: IRS TAX Question

Quote:
Originally Posted by dandiver
Question now is what % ?
Dan...You should consider consulting a CPA to determine what, if anything, would be deductible. The quality of your records which should have been made at or near the time of your business promotion will be key to sustaining deductions taken on your tax return.

If audited, the IRS will want to see contemporaneous documentation to substantiate the business purpose of the expenses deducted on your tax return. Based on the documentation, they will determine what the primary purpose of the trip was: business or pleasure. If the trip and expenditures were mixed as you are suggesting and a percentage deduction couldn't be substantiated, perhaps incremental expenditures specifically related to business promotion would be deductible. The IRS would expect documentation to include daily logs detailing specific business activites, meeting details and durations, client names, expenditure receipts, etc. This documentation would help you or your CPA determine deductible items.

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post #5 of 5 Old Mar 22nd, 2008, 1:46 pm Thread Starter
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Re: IRS TAX Question

Quote:
Originally Posted by jhsonderb
Dan...You should consider consulting a CPA to determine what, if anything, would be deductible. The quality of your records which should have been made at or near the time of your business promotion will be key to sustaining deductions taken on your tax return.

If audited, the IRS will want to see contemporaneous documentation to substantiate the business purpose of the expenses deducted on your tax return. Based on the documentation, they will determine what the primary purpose of the trip was: business or pleasure. If the trip and expenditures were mixed as you are suggesting and a percentage deduction couldn't be substantiated, perhaps incremental expenditures specifically related to business promotion would be deductible. The IRS would expect documentation to include daily logs detailing specific business activites, meeting details and durations, client names, expenditure receipts, etc. This documentation would help you or your CPA determine deductible items.
Thanks, The problem is that on just about all pleasure trips, when I meet new people, or discuss their situation, I manage to conduct business and sell products. Seems like most people want to lower cholesterol and loose fat! The purpose of the trip was pleasure, but business seems to generally take place. Guess it will take a CPA to get proper guidance and then be prepared for an audit.

Dano
Tampa, Fl.

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