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Returning Member
posted Mar 26, 2023 10:19:53 PM

Allowable Business Expense?

Hello.  I work as an independent consultant.  As part of my work, I spend a lot of time networking.  If I travel to attend a charity golf tournament hosted by a potential employer and attended by other potential clients and employers, I know I can't deduct the cost of participation (recreation), but can I deduct the reasonable travel and meal expenses? 

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4 Replies
Level 15
Mar 27, 2023 11:06:44 AM
Returning Member
Mar 27, 2023 11:24:50 AM

Just to clarify - so I can't deduct the cost of participating in the golf tournament because it is "entertainment", but I can deduct travel, lodging, and meals associated with attending since this would be a networking opportunity?

Level 15
Mar 27, 2023 11:34:28 AM

That is the argument that you would use if audited by the IRS. Whether the travel is usual and customary for your business is made on the totality of your circumstances. 

Expert Alumni
Mar 27, 2023 12:32:45 PM

If you are away overnight for business purposes, you can deduct the cost of travel, meals and lodging for yourself. If you are dining with a customer and the main purpose of the meal is to transact business, then you and your customer's meal is deductible. The cost of the golf would not be deductible as it is considered entertainment and as such it would be difficult to substantiate the primary business purposes of the outing.