BY MARK E. BATTERSBY
Contributor
Snow and ice management professionals—owners, managers and employees (even someone who is a shareholder/employee)—can legitimately claim a U.S. income tax deduction for the expenses paid or incurred in attending events such as the Snow & Ice Symposium, Snow Strategies Forum and Build a Bid/Beyond the Bid events.
Much has been said and written about the benefits of attending the Symposium in June. Largely unheralded, however, are the tax-related benefits attendees can reap. Quite simply, the U.S. government will underwrite a portion of the costs associated with attendance at the Symposium or other similar events—if you follow the rules.
Does your company benefit?
Generally, all that is required to qualify for convention-related tax deductions is that you be able to show, if asked, that attendance at the event benefited your snow and ice management operation.
All business. The tax rules clearly state that all travel expenses are tax-deductible if the trip was entirely business related. So long as the trip is "primarily" for business purposes, business-related travel expenses may still qualify as tax deductions if an attendee extends the stay for a vacation, makes a non-business side trip, or participates in other non-business-related activities.
Meals and lodging. The costs of meals and lodging while away from home for business travel is deductible, so long as they are not "lavish or extravagant under the circumstances." Food and beverage costs incurred in the course of business travel fall within the scope of the law's limitation for meal and entertainment expenses, which
generally limits the deduction to 50%
of such expenses.
Tagalongs. Should a spouse, family members or others accompany an attendee, either the attendee or the business can deduct their travel expenses—but there must be a bona fide business purpose for the individual's presence.
Per diems. As an alternative to tracking the actual costs of attendance, you can choose to deduct a standard amount—a "per diem allowance"—for daily meals and incidental expenses. However, even when this standard meal allowance is used, records must be maintained proving the time, place and business purpose of attendance.
In general, the per-diem rates approved by the Internal Revenue Service are those paid by the federal government to workers on travel status. However, instead of using the actual per-diem rates for each local market, a simplified "high-low" per diem, under which there is one uniform per-diem rate for all "high-cost" areas within the continental United States, may be used. Under the optional high-low method for post-Sept. 30, 2009, travel, the high-cost area per diem rate is $258 ($2 more than the previous rate), consisting of $199 for lodging and $65 for meals and incidental expenses (M&IE).
If your employer is related to you or is an incorporated snow and ice management business in which you are more than a 10% principal, the standard meal allowance can't be used.
Keep your receipts
To claim tax deductions, you must be able to prove that the expenses were both business-related and actually paid or incurred. In fact, the following expenses, which have been deemed by the IRS as particularly susceptible to abuse, must generally be substantiated with adequate records or sufficient corroborating evidence: expenses with respect to travel away from home (including meals and lodging); entertainment expenses; and business gifts.
Although the actual amount of the deduction can be taken from tables published by the IRS, it is necessary to prove (through records or sufficient corroborative evidence) the time, place and business purpose of the travel. Documentary evidence, such as receipts or paid bills, is not generally required for expenses less than $75. However, documentary evidence is required for lodging expenses.
So spend this year's Symposium meeting new suppliers, and learning new strategies or business practices, all while enjoying a pleasurable trip—and getting a tax break.
Mark Battersby is a freelance writer based in Ardmore, PA, specializing in tax and finance. Contact him at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
