Travel, M&E Deductions

2 Replies

Has anyone had problems with deducting travel expenses associated with looking at real estate properties in distant areas?  I'm reading "Tax Free Wealth" right now and am curious if anyone has implemented the strategy of investing where you enjoy visiting to essential get a discounted vacation so long as you are working more than 50% of the time.  

Any audit issues?  I keep very good records and have been deducting business meals, expenses, etc for years under my S Corp as a consultant.  

@Eric Barnett : (I am not a CPA or an attorney and speak from experience): It is all about documentation. There is one set of documentation which is the actual expenses incurred, but the other set of documentation is the intent of the trips. If the intent of the trip is a vacation with "oh BTW I saw a few properties", then there could be issues. But if you plan on looking at real estate at these locations, then prior to booking tickets and leaving, initiate communication with local realtors, property managers, accountants, or folks on BP who know the locations. Have the meetings, carryout follow-ups as appropriate, and document what you saw, met, like, disliked, etc. Level of documentation is truly left up-to-you so long as you have adequate to defend yourself in an audit.

Marko Rubel
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