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FAQ: Air Traveler's Handbook 4/4 [Monthly posting]
Section - [4-9] IRS Rules Change

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A recent IRS ruling allows companies to deduct the cost of lodging and
meals as a business expense when an employee stays over a Saturday
night in order to get a cheaper airfare, even if no business is
conducted on that day. The company does not have to report the 
room and meals expenses as income to the employee. 

As of January 1, 1994, the deduction for business meals and
entertainment goes down to 50% (from 80%). Business lodging continues
to be 100% deductible.

This is why many corporate travelers are now booking "Concierge Level"
rooms, which include complimentary breakfast and hors d'oevers. Since
these rooms are 100% deductible, the higher room rate is offset by the
savings vis a vis the IRS 50% meal and entertainment deduction.

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Top Document: FAQ: Air Traveler's Handbook 4/4 [Monthly posting]
Previous Document: [4-8] Phone Numbers Included in this FAQ
Next Document: [4-10] Airline Antitrust Litigation

Part1 - Part2 - Part3 - Part4 - Single Page

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Send corrections/additions to the FAQ Maintainer:
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Last Update March 27 2014 @ 02:12 PM