Travel, Entertainment, Gift, and Car Expenses Published October 4, 2011 · Updated February 3, 2012 Publication 463 – Introductory Material What’s New Reminder Introduction Users of employer-provided vehicles. Volunteers. Ordering forms and publications. Tax questions. Useful Items – You may want to see: 1. Travel Traveling Away From Home Tax Home Tax Home Different From Family Home Temporary Assignment or Job What Travel Expenses Are Deductible? Employee. Business associate. Bona fide business purpose. Meals Travel in the United States Travel Outside the United States Luxury Water Travel Conventions 2. Entertainment Directly-Related Test Associated Test Meetings at conventions. 50% Limit Exceptions to the 50% Limit What Entertainment Expenses Are Deductible? A meal as a form of entertainment. Deduction may depend on your type of business. Exception for events that benefit charitable organizations. Food and beverages in skybox seats. What Entertainment Expenses Are Not Deductible? Out-of-pocket expenses. 3. Gifts 4. Transportation Parking fees. Advertising display on car. Car pools. Hauling tools or instruments. Union members’ trips from a union hall. Car Expenses Standard Mileage Rate Actual Car Expenses Leasing a Car Disposition of a Car 5. Recordkeeping How To Prove Expenses What Are Adequate Records? What If I Have Incomplete Records? Separating and Combining Expenses How Long To Keep Records and Receipts Examples of Records 6. How To Report Where To Report Gifts. Statutory employees. Vehicle Provided by Your Employer Reimbursements Accountable Plans Nonaccountable Plans Rules for Independent Contractors and Clients Completing Forms 2106 and 2106-EZ Information on use of cars. Standard mileage rate. Actual expenses. Car rentals. Hours of service limits. Allocating your reimbursement. 1. Limit on meals and entertainment. 2. Limit on miscellaneous itemized deductions. Special Rules Illustrated Examples Publication 463 – Additional Material Index