Can travel agent client dicscount incentives be deducted and where?

[SweetieJean]

Are you booking the gross amount (pre discount) as revenue?

[bwa]

Are you the Travel Agency, Travel Agent or client?  Who is paying for or being charged for the discount?

[gehopper38]

Am Independent Travel Agent, paying discount to my customers out of my own commissions.

[SweetieJean]

So you give them a rebate?

[gehopper38]

Booking gross amount (pre discount) as revenue. Did not deduct anything.

[gehopper38]

Yes, % of total commission.

[VolvoGirl]

So you will get a 1099Misc for the gross amount?  Then do you cut a check to the client or how do you give them the discount?

[gehopper38]

Provided through Travel Agency program I work with, along with incentives they also provide and both discounts are passed along to customer as on-board credit. It's taken from commissions recieved by the Travel Agency from the cruise line and then my part is taken out of my commission. In other words, I give money back to my customers to retain them. Each has to be approved by the Agency.

[view2 · Accepted solution]

The discount must be taken from your commission that you receive on the transaction.

The costs associated with client discounts borne by a travel agent is deductible at tax time.[taken out of commissions]

 If the discount is underwritten by a hotel, airline, rental car company or other vendor, it is no longer deductible for the travel agent as a tax deduction.

[gehopper38]

Thanks, I need to know where to deduct in Turbo Tax though, since I did not know I that could on my 2015 taxes and will have to refile.

[view2]

Your welcome.
Other Expenses. SCHEDULE C
List  business expenses not included on lines 8–26 or line 30.
Generally in Turbotax  this is the last screen that is displayed in the Schedule C expense section.
Ensure you state a proper description for expense and then the expense in the proper line.
You can aggregate or list separate as applied to each event.

[gehopper38]

That answers my questions, thanks!

[view2]

Your welcome.