Business Deductions: Business Deductions (Travel, Meals, Home Office)
Quick answer
Travel is deductible when a taxpayer is away from the tax home overnight on business, but commuting between home and a regular workplace never is. Business meals are generally limited to 50% of cost under IRC §274. A home office must be used regularly and exclusively for business. Pub 463 covers substantiation rules.
Business Deductions (Travel, Meals, Home Office) is tested on EA Exam Part 2 (Business Income & Deductions). Primary IRS reference: IRS Publication 463.
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About this EA exam topic
Business-deduction questions test travel, meals, and home-office rules. Travel away from the tax home is deductible; business meals are subject to a percentage limit; the home office must meet the regular-and-exclusive-use test.
The EA exam tests the meal-deduction percentage, the distinction between travel and commuting, and the simplified vs. actual home-office methods.
What you'll be tested on
- Deductible travel vs. nondeductible commuting
- The business-meal percentage limit
- Home-office regular-and-exclusive-use test and methods
- Substantiation requirements
How to prepare
- Memorize the current meal-deduction percentage.
- Commuting is never deductible. Watch the trap.
- Compare simplified vs. actual home-office methods.
Practice questions for Business Deductions (Travel, Meals, Home Office)
What this topic covers
Business Deductions (Travel, Meals, Home Office) appears in Part 2: Business Taxation within the Business Income & Deductions domain. VantageEA practice questions focus on how business deductions rules are applied in realistic EA exam fact patterns.
What candidates practice
Candidates practice identifying tested facts, choosing the best multiple-choice answer, and reviewing explanations tied to IRS Publication 463, IRS Publication 535, IRC §162, IRC §274. This topic supports timed 100-question PSI-style mock tests and shorter topic review sessions.
Related practice-question themes include business-deductions, travel, meals, home-office.
Topic overview
Official IRS sources
Related keywords
Frequently asked questions
Are business meals fully deductible?
Generally limited to a percentage of cost; the exam tests the current percentage.
Which part?
Part 2 (Businesses).
Reference?
IRS Publications 463 and 587.
Continue studying
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