We have a consulting practice in which the principals and some employees fly to a client site each week. If the principals or the employee flies back on the weekends, are the trips tax deductible?

ANSWER

The BIDaWIZ Team's Answer:

If the trip is primarily for business, the travel expenses would be deductible as per IRS Publication 463. However, if the employee or principal is returning home each week to see family, those travel expenses would only be deductible if this was a temporary assignment. You cannot deduct the cost of your meals and lodging while home, but you can deduct your travel expenses, including meals and lodging, while traveling between your temporary place of work and your tax home. You can claim these expenses up to the amount it would have cost you to stay at your temporary place of work. In addition, if you keep your hotel room during your visit home, you can deduct the cost of your hotel room. In addition, you can deduct your expenses of returning home up to the amount you would have spent for meals had you stayed at your temporary place of work.

References: IRS Publication 463; IRC Section 274(d) and 162
State: California