Introduction
You may be able to deduct the ordinary and necessary business-related expenses you have for:
•Travel,
•Entertainment,
•Gifts, or
•Transportation.
An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your business. An expense does not have to be required to be considered necessary.
This . explains:
•What expenses are deductible,
•How to report them on your return,
•What records you need to prove your expenses, and
•How to treat any expense reimbursements you may receive.
Who should use this .. You should read this . if you are an employee or a sole proprietor who has business-related travel, entertainment, gift, or transportation expenses.
Users of employer-provided vehicles. If an employer-provided vehicle was available for your use, you received a fringe benefit. Generally, your employer must include the value of the use or availability of the vehicle in your income. However, there are exceptions if the use of the vehicle qualifies as a working condition fringe benefit (such as the use of a qualified nonpersonal use vehicle).
A working condition fringe benefit is any property or service provided to you by your employer for which you could deduct the cost as an employee business expense if you had paid for it.
A qualified nonpersonal use vehicle is one that is not likely to be used more than minimally for personal purposes because of its design. See Qualified nonpersonal use vehicles under Actual Car Expenses in chapter 4.
For information on how to report your car expenses that your employer did not provide or reimburse you for (such as when you pay for gas and maintenance for a car your employer provides), see Vehicle Provided by Your Employer in chapter 6.
Who does not need to use this .. Partnerships, corporations, trusts, and employers who reimburse their employees for business expenses should refer to their tax form instructions
You may be able to deduct the ordinary and necessary business-related expenses you have for:
•Travel,
•Entertainment,
•Gifts, or
•Transportation.
An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your business. An expense does not have to be required to be considered necessary.
This . explains:
•What expenses are deductible,
•How to report them on your return,
•What records you need to prove your expenses, and
•How to treat any expense reimbursements you may receive.
Who should use this .. You should read this . if you are an employee or a sole proprietor who has business-related travel, entertainment, gift, or transportation expenses.
Users of employer-provided vehicles. If an employer-provided vehicle was available for your use, you received a fringe benefit. Generally, your employer must include the value of the use or availability of the vehicle in your income. However, there are exceptions if the use of the vehicle qualifies as a working condition fringe benefit (such as the use of a qualified nonpersonal use vehicle).
A working condition fringe benefit is any property or service provided to you by your employer for which you could deduct the cost as an employee business expense if you had paid for it.
A qualified nonpersonal use vehicle is one that is not likely to be used more than minimally for personal purposes because of its design. See Qualified nonpersonal use vehicles under Actual Car Expenses in chapter 4.
For information on how to report your car expenses that your employer did not provide or reimburse you for (such as when you pay for gas and maintenance for a car your employer provides), see Vehicle Provided by Your Employer in chapter 6.
Who does not need to use this .. Partnerships, corporations, trusts, and employers who reimburse their employees for business expenses should refer to their tax form instructions
