Have taxpayer who is an officer of C-Corp and officer took business trip and wife accompanied him. Officer advised me that "many of these business trips make taking wives mandatory". Would others make flight expense for wife a valid business expense for corporation based on officer's response or add to officer's payroll?
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Spouse travel as business
If spouse is not an employee, then not a business expense. If reimbursed for the expense, it should show on the taxpayer's w2. -
my take
If the company has a written accountable plan and the records exist then you can have a business expense without taxing the benefit to him. Absent such a plan I think it is necessary to tax him on the reimbursement. I could be totally off base - let's see what others think.
I just saw Okie's post. While logical, I still think that if you have a proper accountable plan you're alright especially if it really was true that spouses were expected at the event. At or before the event is the time to gather evidence of that expectation.Comment
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Business Deduction
Taxpayer charged the expense on the corporate charge card that the company provides him and he gave receipts.Comment
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See Pub 463. Generally, if another person or dependent accompanies the business person, their expenses are not deductible. Performing incidental tasks such as typing, filing, scheduling, etc. do not qualify the expense for deduction. See also, www.ivdgl.org/pages/c-articlesjulian/tm10.html.Comment
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the company probably requires the spouse to attend so the emp. spouse won't fool-aroundBelieve nothing you have not personally researched and verified.Comment
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T Y Burke
That was a very helpful article. You were right and I was wrong.Comment
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