@Bubbabubba wrote:
Why would you include meals? as in mileage and other expenses.
That's not deductible unless it is a meal that IS conducting business such as a business meeting.
Consult with your CPA
Yes, definitely consult with your tax advisor. But meals are deductible in many circumstances, even if the meal itself does not involve conducting business. Your blanket statement is incorrect. For example, I'm an antique/vintage-fashion dealer in one of my "other lives." When I go on a buying trip, I can deduct meals--up to allowable limits, of course. I'm also a freelance marketing communications specialist. I sometimes had to go out of town for clients to do a press proof, for example, and would be gone an entire day, if I had to buy a meal, I could deduct it. If I'm on the road doing a route of mystery shops, and am gone all day, I can deduct the cost of a meal I have to eat during the course of that route. Again, that deduction is subject to IRS-allowable limits.
And, yes, this information comes straight from at least three tax professionals (two of whom were CPAs, and the other is a licensed or certified--I forget what it's called--tax preparer) who have done my taxes (all of which have included Schedule C income) over the last 30 years. I'm not making it up/pulling it out of my butt!
I see I've cross-posted with others on this topic. Deducting meals shouldn't set you up for an audit, as long as the costs are reasonable. And, obviously, if you're audited, you probably need to be able to prove you were "on business" on those days. Meal deductions aren't automatically a flag for being audited. I don't understand why people are "afraid" to take them. They're a legitimate business expense, if not abused.
I learn something new every day, but not everyday!
I've learned to never trust spell-check or my phone's auto-fill feature.
Edited 1 time(s). Last edit at 06/25/2016 02:01PM by BirdyC.