| Tax Tip 2008-03-06, 9:25 am |
| When traveling away from home on business, you may incur expenses for
meals and entertainment. You can deduct 50% of meal and entertainment
costs incurred when traveling locally, overnight, or long distance for
your rental activity.
So if you get hungry driving across town while going to pickup the
rent check, consider taking your tenant out to lunch. Deducting half
of your combined expense may be more beneficial than not being able to
write-off your own meal.
Keep in mind that meal and entertainment costs are deductible only if
they are considered ordinary and necessary for managing your
investments. To learn more about which meal and entertainment expenses
you can deduct from your Schedule E, take a look at RealTaxTips.com
( http://www.realtaxtips.com ) Learn how others are saving money on
their real estate investments, and easy way to get prepared for taxes.
Niman Singh
Community Relations Director TReXGlobal.com
( http: www.trexglobal.com )
FREE to Use Simple Web Tools for Real Estate Investors
|