CPA: Overland Park Travel Expenses

Citing travel and entertainment expenses for a business, especially a small or medium sized business, can get tricky and is best navigated by a trusted professional or CPA. Overland Park businesses’ eligibility for deducting these types of expenses varies depending on the type of business that is being conducted. The IRS makes the distinction that these travel expenses, which may include flights, meals, entertainment, incidentals, and more, should be ordinary and necessary to conduct business.

An Overland Park accountant will definitely advise a business to keep excellent records of any and all travel expenses that will be used at tax time. He or she may also advise the client to note why each instance was ordinary or necessary for business operations. Accurate records will assure that the business can deduct all their business expenses within the framework of the law.

Overland Park Accountant: Making Distinctions

While the regulations can seem quite strict, there is actually fairly wide latitude given for inclusion. First of all, a thorough documentation of events will prevent any red flags from being raised on your return. An Overland Park accountant can advise you on the best way to itemize and explain these expenses as they pertain to your business.

For example, if your business is in the entertainment industry, it may be perfectly acceptable that you entertain a potential client at a nightclub. However, if you are a veterinarian, this may be inappropriate and ineligible. Also, the business owner does not necessarily have to be the participant in the expenditure—flying a prospective client in to a home office can also be acceptable. All of his incurred expenses while in town would also be eligible.

Good record keeping with high level explanations resolves any questions regarding the validity of travel expenses. With a trusted CPA, Overland Park businesses should feel confident deducting the maximum allowable expenses without raising red flags or being subject to audit.

More information:

• Tax Advice and Planning