Are you taking your spouse on a business trip? Can you write off the costs?
Post-pandemic global business travel is projected to reach $928.4 billion by 2030, following a reported market value of $665.3 billion in 2022. Business owners who travel may have questions about deducting the expenses of bringing their spouse along on trips.
Is your spouse an employee?
Deducting a spouse’s travel costs is restricted to cases where they are employees, and their presence serves a bona fide business purpose. Merely performing incidental tasks or participating in social functions is usually not enough. However, it may qualify if their presence is necessary for medical care.
If your spouse’s travel meets the requirements, the usual deductions for business travel can be claimed, covering transportation, meals, lodging, and incidental costs.
What if your spouse isn’t an employee?
Your spouse’s travel may not meet the qualification requirements for a tax deduction. However, you can still deduct a significant portion of the trip’s cost. You are only required to allocate additional expenses incurred for your spouse, such as hotel single-room rates. If traveling alone, you can deduct the cost of a single room even if your spouse joins. Public transportation and meal expenses incurred by your spouse are not deductible.
Have questions?
You want to maximize all the tax breaks you can claim for your small business. Contact me at 856-665-2121 if you have questions or need assistance with this or other tax-related issues.
-RJC
