When are airline tickets purchased for business travel tax deductible, year purchased or year used?

Question

I bought tickets in late Dec 2006 for a business trip in early 2007. Are the tickets a deduction for 2006 when I paid for them, or in 2007 when the actual business travel took place.

Answer 1

Individual taxpayers work on a cash basis. This means that expenses are deductible when you pay the cash for them. Deduct in 2006.

Answer 2

IF you didn't receive any reimbursement for them, and didn't get a refund for any reason, you would deduct the expense in the year paid.



You need to know that if someone traveled with you who was not a business associate, that person's air fare isn't a tax deduction. Also, if the trip wasn't solely for business, there may be other limitations on the amount of business expense you may claim.

Answer 3

In the year the expense was incurred.



However, if you receive a refund of the tickets in a later year, you are required to file an adjustment to the prior year's return.

Answer 4

won't be able to see why no longer. there are a range of deductibles for a small busines, yet be careful about the homestead workplace deduction. I.R.S. continually seems for returns with a component of the homestead deducted for corporation use. wish you luck consisting of your new corporation. undergo in options, Michael Dell began his corporation in his storage.

Answer 5

You deduct them when you pay for them. The other expenses would be deducted when you travel, of course.

Answer 6

they are deductible when you bought and paid for them in 2006...

Answer 7

When you bought them as it is on the receipt.