Timeline for Can I make a trip tax deductible if it is for personal development?
Current License: CC BY-SA 4.0
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| May 6, 2023 at 2:31 | comment | added | ian101 | Thanks, I'll look into it more. Since there's a good deduction for W2 and not 1099, I thought this work-related trip might count, but I see how it's not exactly necessary for my work and the IRS wants to get their money. | |
| May 5, 2023 at 0:27 | comment | added | littleadv | As a general rule, Revenue Agents have seen it all and heard it all, you're not the first one trying to pass a personal trip as a business expense. | |
| May 5, 2023 at 0:24 | comment | added | littleadv | You should read the IRS publication I linked to. You should also read the IRS Publication 535. If you're a W2 employee, then it is not your decision what is ordinary and necessary, but your employer's. No, going to the Bay Area is not "ordinary" for a developer. There are millions of developers who never go to the Bay Area. There's nothing in particular required for your job in that specific geographic location. "networking" is not an expense. Meeting people not related to any specific business transaction is not an expense. | |
| May 4, 2023 at 23:59 | comment | added | ian101 | Say I have a number of things that I do on this trip that are "ordinary and necessary" for my self-employment, and some things that are more for fun (they may also be helpful for my career and thus my self-employed work in indirect ways, but I wouldn't deduct them). Should I then deduct the entire cost of the flight and hotel, or should I calculate a percentage? | |
| May 4, 2023 at 23:41 | comment | added | ian101 | Thanks! I'll also cover the trip with 1099 income, so maybe I'll use the grant for some parts that wouldn't make sense as deductibles. It's also possible that the clients/employers I'd meet there will be W2 and not 1099 income. I think going to the Bay Area would be pretty ordinary for a developer, not necessarily necessary (but a training isn't necessary either). Networking could be "ordinary and necessary" because it's a form of marketing when you're self-employed. | |
| May 4, 2023 at 23:34 | vote | accept | ian101 | ||
| May 4, 2023 at 16:26 | history | answered | littleadv | CC BY-SA 4.0 |