Hi Larry, I have a question for you regarding a tax write off. I am a partner of a salon that is a Corporation. I belong to a non-profit organization. Several of my clients (at least a dozen) belong to this organization. Next year I will be representing the state of Mo. and will travel several times a week. Also in my travels I will be doing other women's hair for our functions. We do give to several Charities. My question is could I take any expenses off for this? ~Rachel
Rachel, thank you for your charitable efforts. It is always good to hear from someone who is giving back to the community. You asked if you could deduct your travel costs for the functions that you are going to be attending. The answer is yes. Mileage is deductible at $.14 and then of course any land or air transportation would be at actual costs. These deductions would be to you personally as opposed to the corporation. One thing that is important is to be sure that you are a delegate of the organization. There have been instances where someone has good intentions and attends a convention but they were not actually requested or required by the organization to attend. The IRS has disallowed the deduction.
As an example, let’s say I was an assistant Boy Scout leader and I went to Las Vegas to attend a Boy Scout leader’s convention. If the Boy Scout troop or the sponsor of the Boy Scout troop requested that I go to the convention, then I could take deductions for my airline ticket, my $.14 a mile to the airport, my hotel and my food while at the convention. On the other hand, if I just went there because I was looking for an excuse to get out of the house and go to Las Vegas and they had not requested or required me to go, then this would be considered a personal expenditure by the IRS.
As far as the haircutting and other work that you do, the only thing that would be deductible would be your actual supply cost. The value of your time would not be a deduction.
Let me know if you have any other questions.
It is a pleasure serving you.
Larry Kopsa CPA
As an example, let’s say I was an assistant Boy Scout leader and I went to Las Vegas to attend a Boy Scout leader’s convention. If the Boy Scout troop or the sponsor of the Boy Scout troop requested that I go to the convention, then I could take deductions for my airline ticket, my $.14 a mile to the airport, my hotel and my food while at the convention. On the other hand, if I just went there because I was looking for an excuse to get out of the house and go to Las Vegas and they had not requested or required me to go, then this would be considered a personal expenditure by the IRS.
As far as the haircutting and other work that you do, the only thing that would be deductible would be your actual supply cost. The value of your time would not be a deduction.
Let me know if you have any other questions.
It is a pleasure serving you.
Larry Kopsa CPA
