Business trip

[oceanlovin'ea]

Client attended a seminar to further her business, learning new procedures, etc. She has an s corp. The s corp has 3 shareholders - herself, her husband and her adult son.

Her son went with her on the trip. He did not attend the seminar but drove her there. It was in another state.

Would his meals be deductible by the s corp?

I think I already know the answer but would just like to hear from some others. So I can honestly tell her I researched the issue.

Thanks.

Linda F

[taxmandan]

Why did he drive?

Is there a reason for him driving her there, other than someone along for company? If she was unable to drive herself, then his participation may be necessary for her to attend and in that case I would say his meals are deductible.

[ChEAr$]

expenses

Client attended a seminar to further her business, learning new procedures, etc. She has an s corp. The s corp has 3 shareholders - herself, her husband and her adult son.

Her son went with her on the trip. He did not attend the seminar but drove her there. It was in another state.

Would his meals be deductible by the s corp?

I think I already know the answer but would just like to hear from some others. So I can honestly tell her I researched the issue.

Thanks.

Linda F

If the corporation paid the expenses for her, of course.
But if she paid her own expenses, then there had better be a document somewhere in
the form of an accountable plan allowing her reimbursement.
And for his meals, no.

[oceanlovin'ea]

That is the line of reasoning that I thought about.

She does have a note for one of the meals that they discussed marketing for the business with the procedures she was learning about. So I guess one meal could be considered a board meeting.

I will make sure that she has an accountable plan in place. I think that I told her about that before.

Linda F

[ChEAr$]

Board meeting?

That is the line of reasoning that I thought about.

She does have a note for one of the meals that they discussed marketing for the business with the procedures she was learning about. So I guess one meal could be considered a board meeting.

I will make sure that she has an accountable plan in place. I think that I told her about that before.

Linda F

not unless a formal board meeting was due per the bylaws, or a special meeting
called by due process according to the bylaws.

Now, if my wife were an employee of my S corp and accompanied me to a meeting,
there's no way I would even consider writing off her meal cost just because we happend
to gossip about a client. (grin