(Hank) Moorehouse 1934 – 2011 - The Society of American Magicians

The Tax Magician by Steve Snyder
Business and Tax Advice for the Self-Employed Entertainer
Which of My Convention
Expenses is Deductible?
Last month I wrote about the joys of going to a convention.
I hope you went, or are still planning to go to
one. I can’t say it enough times – it’s worth the trip.
This month, I’d like to discuss your expenses going
to and during your convention experience. As always,
good recordkeeping now will avoid the headaches later.
Let’s begin with your registration. Your registration
fees are one hundred percent deductible. I’ll discuss the
deductibility of family members you may be bringing
with you at the end of this article.
Next comes your trip. How did you get to the convention?
Did you fly or drive? If you flew, all your expenses
are deductible: the trip to the airport, the flight, getting
from the airport to the hotel. How did you get to the
airport? Taxi? That’s deductible, including the tip. Did
a friend drive you? You can claim the mileage and
reimburse your friend later. Did you drive yourself and
leave your car in long-term parking? You can deduct
that expense, too.
Perhaps you live close enough to drive to the convention.
If you drove your own vehicle you are limited to the
mileage allowance or your actual expenses, depending
on which method you use for your tax return. As of July
1, the allowance is 55½ cents per mile.
Maybe you drove a long distance, spending a night
or two in a motel. The motel expenses are deductible,
too. I’ll discuss meals later.
Now that you’ve arrived, we can deal with your hotel
bill. Your hotel bill is completely deductible. However,
keep away from the snack bar. Not only is it expensive,
but meals are limited. However, using the snack bar
would be included on your hotel bill. So if you must
use it, try not to get caught if you decide to deduct it.
Better yet, stop at a local Wal-Mart type store and buy
whatever snacks you need for your room. Hey, the ice
is free!
While at the convention you just happen to wander
into the dealer’s room. Who could blame you? All those
effects are calling your name, a temptation much too
hard to resist. Anything you purchase should be deductible
as supplies or equipment. If it’s a big-ticket
item, you may want to deduct it under Section 125.
I don’t believe in depreciating my assets if I can write
them off. After all, I had to pay for them all at once;
why not deduct them all at once?
Let’s talk about meals. Some hotels provide a free
continental breakfast. Nothing to deduct there – it’s
free. When Liz and I go to conventions, the free continental
breakfast is actually our preferred method of
breakfast. And while we’re at it, we also pick up a
few pieces of fruit or granola bars to snack on later.
But other hotels do not provide such amenities and
you are on your own. Or you may prefer to eat at the
hotel and charge the meals to your room. Meals are a
tricky deduction. Generally, meals are limited to a 50%
deduction. The thought being that you could have
eaten at home. Not likely since you’re many miles away.
I usually deduct the full cost of my breakfast on those
occasions when I have to purchase it. Not legal, but
worth the risk. Lunch is always available at the hotel –
somehow. But if you do need to go out, keep in mind
the 50% rule. Dinner is usually eaten with friends from
the convention, or with my wife. We usually choose
something a bit nicer than a local fast food place. So,
here I follow the 50% rule.
Let’s talk about family members. As I mention earlier,
my wife Liz usually accompanies me. Although she
does not perform with me, she is my consultant. She
know better than anyone else, what effects are me,
and which ones I need to avoid no matter how much I
whine, beg, or plead. As my consultant, her part of the
trip is also deductible.
All our children are grown and gone, so we never
have to deal with them. You, on the other hand, may
be bringing other family members – depending on the
convention location and what other stuff there is for
your family to do. Their expenses are not deductible.
None of them! You cannot claim your ten-year-old son
as a consultant. However, if your children are truly a
part of your act, performing with you as a regular part
of your show, then you may deduct their expenses as
indicated above.
That about covers all the expenses I can think of in
conjunction with what I hope was an experience of
a lifetime. If I left anything out, or if you still have a
question or two, write to me, call me, or if you see me
at a convention, just come up and ask me.
Whatever you do, whatever you bought, wherever
you ate; keep all your receipts. �
Steve Snyder has a BS in Accounting and an
MBA. Let him put his knowledge to work for
you. Send business or tax questions to him at:
thetaxmagician@centurylink.net. Please put “M-U-M
question” in the subject line. Steve is also the
author of several books, all of which are available at:
www.thetaxmagician.com.
AUGUST 2011 73