Publication 463 (2005), Travel, Entertainment, Gift, and Car Expenses

Symbols

"Hours of service" limits, Individuals subject to hours of service limits.

"Hours of service" limits:

Form 2106, Hours of service limits.

50% limit on meals, 50% limit on meals.

A

Accountable plans, Accountable Plans

Accounting to employer, Accountable Plans

Adequate accounting, Adequate Accounting

Adequate accounting:

Independent contractors, Adequate accounting.

Adequate records, What Are Adequate Records?

Advertising:

Car display, Advertising display on car.
Expenses, 3 - Advertising expenses.
Signs, display racks, or promotional material to be used on recipient's business premises, Exceptions.

Airline clubs, Club dues and membership fees.

Allocating costs, Separating costs., Separating costs., Allocating between business and nonbusiness., Allocating total cost.

Allowance (see Reimbursements)

Armed forces:

Assigned overseas, Members of the Armed Forces.

Assistance (see Tax help)

Associated entertainment, Associated Test

Athletic clubs, Club dues and membership fees.

B

Basis of car, Basis.

Basis of car:, Basis.

(see also Depreciation of car)

Bona fide business purpose, Bona fide business purpose.

Box seats at entertainment events, Skyboxes and other private luxury boxes.

Business travel, Trip Primarily for Business

Business travel:

Outside U.S., Travel Entirely for Business or Considered Entirely for Business

Business use of car, Business and personal use.

Business use of car:

More-than-50%-use test., More-than-50%-use test.
Qualified business use, Qualified business use.

C

Canceled checks:

As evidence of business expenses, Canceled check.

Car expenses, Car Expenses, Reporting inclusion amounts.

Depreciation (see Depreciation of car)
Mileage rate (see Standard mileage rate)

Car expenses:

Actual expenses, Actual Car Expenses
Allowances for, Per Diem and Car Allowances, Allowance more than the federal rate.
Business and personal use, Business and personal use.
Combining expenses, Car expenses.
Disposition of car, Disposition of a Car
Fixed and variable rate (FAVR) allowance, Fixed and variable rate (FAVR).
Form 2106, Car expenses.
Leasing a car, Leasing a Car, Reporting inclusion amounts.
Taxes paid on car, Taxes paid on your car.
Traffic tickets, Fines and collateral.

Car pools, Car pools.

Car rentals, Leasing a Car, Reporting inclusion amounts.

Car rentals:

Form 2106, Car rentals.

Car, defined, Car defined.

Casualty and theft losses:

Cars, Casualty and theft losses.

Cars:

Depreciation, Casualty or theft.

Charitable organizations:

Benefit events for, Exception for events that benefit charitable organizations.
Sports events to benefit, 5 - Charitable sports event.

Clean-fuel cars, Exceptions for clean-fuel cars.

Club dues, Club dues and membership fees.

Comments on publication, Comments and suggestions.

Commuting expenses, Commuting expenses.

Conventions, Conventions, Meetings at conventions.

Country clubs, Club dues and membership fees.

Cruise ships, Cruise Ships

D

Daily business mileage and expense log (Table 6-2),

Depreciation of car:, Depreciation and section 179 deductions.

(see also Section 179 deductions)

Adjustment for using standard mileage rate, Depreciation adjustment when you used the standard mileage rate.

Basis, Basis.

Basis:

Sales taxes, Sales taxes.
Unrecovered basis, How to treat unrecovered basis.

Casualty or theft, effect, Casualty or theft.

Deduction, Depreciation and section 179 deductions., Depreciation deduction for the year of disposition.

Excess depreciation, Excess depreciation.

Modified Accelerated Cost Recovery System (MACRS), Modified Accelerated Cost Recovery System (MACRS).

Trade-in, effect, Car trade-in., Trade-in.

Trucks and vans, Trucks and vans.

Depreciation of Car:

Section 179 deduction, Section 179 deduction.

Directly-related entertainment, Directly-Related Test

Disabled employees:

Impairment-related work expenses, Impairment-Related Work Expenses of Disabled Employees

Documentary evidence, Documentary evidence.

E

Electric cars, Electric car.

Employer-provided vehicles, Employer-provided vehicle.

Employer-provided vehicles:

Reporting requirements, Vehicle Provided by Your Employer

Entertainment expenses, Entertainment, Individuals subject to hours of service limits., Gift or entertainment.

Tickets (see Tickets)

Entertainment expenses:

50% limit, 50% Limit

50% limit:

Determination of applicability (Figure A), , 50% Limit

Associated test, Associated Test

Deductible, What Entertainment Expenses Are Deductible?, Expenses for spouses.

Deductible:

Summary (Table 2-1), Exception for events that benefit charitable organizations.

Directly-related test, Directly-Related Test

Entertainment, defined, Entertainment.

Form 2106, Meal and entertainment expenses.

Entertainment facilities:

Expenses for use of, Entertainment facilities.

Estimates of expenses, How To Prove Expenses

Exceptions to the 50% Limit, Exceptions to the 50% Limit

Excess reimbursements (see Reimbursements)

Extravagant expenses, Lavish or extravagant., Lavish or extravagant expenses.

F

Fair market value of car, Fair market value.

Farmers:

Form 1040, Schedule F, Self-employed.

Federal crime investigations or prosecutions:

Federal employees engaged in, Exception for federal crime investigations or prosecutions.

Federal rate for per diem, Standard Meal Allowance, The federal rate.

Fee-basis officials, Officials Paid on a Fee Basis

Fees you pay, Parking fees.

Fixed and variable rate (FAVR) allowance, Fixed and variable rate (FAVR).

Form 1040, Schedule C, Self-employed.

Form 1040, Schedule F, Self-employed.

Form 2106, How to choose., Employees., Full value included in your income., Reporting your expenses under a nonaccountable plan., Completing Forms 2106 and 2106-EZ, Illustrated Examples

Form 2106-EZ, Form 2106-EZ., Illustrated Examples

Form 4562, Self-employed.

Form 4797, Excess depreciation.

Form W-2:

Employer-provided vehicles, Value reported on Form W-2.
Reimbursement of personal expenses, Reimbursement for personal expenses.
Statutory employees, Statutory employees.

Free tax services, How To Get Tax Help

G

Gifts, Gift or entertainment., Gifts,

Gifts:

$25 limit, $25 limit.
Combining for recordkeeping purposes, Gift expenses.
Reporting requirements, Gifts.

Golf clubs, Club dues and membership fees.

H

Hauling tools, Hauling tools or instruments.
Help (see Tax help)
High-low rate method, High-low rate.
Home office, Office in the home.
Hotel clubs, Club dues and membership fees.

I

Impairment-related work expenses, Impairment-Related Work Expenses of Disabled Employees

Incidental expenses:

Defined, Incidental expenses.
Gifts, Incidental costs.
No meals, incidentals only, Incidental expenses only method.

Income-producing property, Income-producing property.

Incomplete records, What If I Have Incomplete Records?

Indefinite job assignment, Temporary assignment vs. indefinite assignment.

Independent contractors, Rules for Independent Contractors and Clients

Interest on car loans, Interest on car loans.

Itinerants, Tax Home

L

Lavish or extravagant expenses, Lavish or extravagant., Lavish or extravagant expenses.
Leasing a car, Leasing a Car, Reporting inclusion amounts.
Luxury private boxes at entertainment events, Skyboxes and other private luxury boxes.
Luxury water travel, Luxury Water Travel

M

MACRS (Modified Accelerated Cost Recovery System), Modified Accelerated Cost Recovery System (MACRS).

MACRS (Modified Accelerated Cost Recovery System):

2005 chart (Table 4-1), How to use the 2005 chart.

Main place of business or work, Main place of business or work.

Married taxpayers:

Performing artists, Special rules for married persons.

Meal expenses, Meals

Meal expenses:

50% limit, 50% Limit

50% limit:

Determination of applicability (Figure A), , 50% Limit
Exceptions, Exceptions to the 50% Limit

Actual cost method, Actual Cost

Form 2106, Meal and entertainment expenses.

Major cities with higher allowances, Amount of standard meal allowance.

Standard meal allowance, Standard Meal Allowance, Who can use the standard meal allowance., The standard meal allowance.

Meals, entertainment-related, A meal as a form of entertainment.

Mileage rate (see Standard mileage rate)

Military (see Armed forces)

Missing children, photographs of, Reminder

Modified Accelerated Cost Recovery System (MACRS), Modified Accelerated Cost Recovery System (MACRS).

Modified Accelerated Cost Recovery System (MACRS):

2005 chart (Table 4-1), How to use the 2005 chart.

More information (see Tax help)

N

Nonaccountable plans, Nonaccountable Plans

O

Office in the home, Office in the home.

Officials paid on fee basis, Officials Paid on a Fee Basis

Overseas travel:

Conventions, Conventions Held Outside the North American Area
Meal allowance, Standard meal allowance for areas outside the continental United States.
Part of trip outside U.S., Part of Trip Outside the United States

P

Parking fees, Parking fees., Parking fees and tolls.

Per diem allowances, Per Diem and Car Allowances, Allowance more than the federal rate.

Per diem allowances:

Defined, Reimbursement, allowance, or advance.
Federal rate for, The federal rate.

Performing artists, Expenses of Certain Performing Artists

Personal property taxes, Personal property taxes., Taxes paid on your car.

Personal trips, Trip Primarily for Personal Reasons

Personal trips:

Outside U.S., Travel Primarily for Personal Reasons

Placed in service, cars, Placed in service.

Probationary work period, Probationary work period.

Proving business purpose, Proving business purpose.

Public transportation:

Outside of U.S. travel, Public transportation.

Publications (see Tax help)

R

Recordkeeping requirements, Recordkeeping, Examples of Records

Recordkeeping requirements:

Adequate records, What Are Adequate Records?
Daily business mileage and expense log (Table 6-2),
Destroyed records, Destroyed records.
How to prove expenses (Table 5-1), How To Prove Expenses
Incomplete records, What If I Have Incomplete Records?
Reimbursed expenses, Reimbursed for expenses.
Sampling to prove expenses, Sampling.
Separating and combining expenses, Separating and Combining Expenses, If your return is examined.
Three-year period of retention, How Long To Keep Records and Receipts
Weekly travel expense and entertainment record (Table 6-3),

Reimbursements, Reimbursements, Contractor does not adequately account.

Reimbursements:

Accountable plans, Accountable Plans
Excess, Returning Excess Reimbursements, Nonaccountable Plans
Form 2106, Reimbursements.
Nonaccountable plans, Nonaccountable Plans
Nondeductible expenses, Reimbursement of nondeductible expenses.
Personal expenses, Reimbursement for personal expenses.
Recordkeeping, Reimbursed for expenses.
Reporting (Table 6-1), Allowance more than the federal rate.
Unclaimed, Where To Report

Reporting requirements, How To Report, Illustrated Examples

Reporting requirements:

Per diem or car allowance, Reporting your expenses with a per diem or car allowance.
Reimbursements, Reimbursements, Contractor does not adequately account.

Reservists:

Transportation expenses, Armed Forces reservists.
Traveling more than 100 miles from home, Armed Forces Reservists Traveling More Than 100 Miles From Home

Returning excess reimbursements, Returning Excess Reimbursements

Rural mail carriers, Rural mail carriers.

S

Section 179 deduction:

Amended return, How to choose.
Deduction, Section 179 Deduction
Limits, Limits.

Self-employed persons, 2 - Self-employed.

Self-employed persons:

Reporting requirements, Self-employed.

Skyboxes, Skyboxes and other private luxury boxes.

Spouse, expenses for, Travel expenses for another individual., Expenses for spouses.

Standard meal allowance, Standard Meal Allowance, Who can use the standard meal allowance., The standard meal allowance.

Standard mileage rate, What's New, Standard Mileage Rate, The standard mileage rate.

Standard mileage rate:

Depreciation adjustment for using, Depreciation adjustment when you used the standard mileage rate.
Form 2106, Standard mileage rate.

Statutory employees, Statutory employees.

Suggestions for publication, Comments and suggestions.

T

Tables and figures:

50% limit determination (Figure A), , 50% Limit
Daily business mileage and expense log (Table 6-2),
Entertainment expenses, determination of deductibility (Table 2-1), Exception for events that benefit charitable organizations.
Modified Accelerated Cost Recovery System (MACRS) 2005 chart (Table 4-1), How to use the 2005 chart.
Proving expenses (Table 5-1), How To Prove Expenses
Reporting reimbursements (Table 6-1), Allowance more than the federal rate.
Transportation expenses, determination of deductibility (Figure B), Gift or entertainment., Illustration of transportation expenses.
Travel expenses, determination of deductibility (Table 1-1),
Weekly travel expense and entertainment record (Table 6-3),

Tax help, How To Get Tax Help

Tax home, determination of, Tax Home

Taxpayer Advocate, Contacting your Taxpayer Advocate.

Temporary job assignments, Temporary Assignment or Job

Temporary work location, Temporary work location.

Tickets, Entertainment tickets., Gift or entertainment.

Tickets: