20.14 Travel Expenses of a Spouse or Dependents

Travel costs of a spouse, dependent, or any other individual who is not a business associate and who accompanies you on a business trip are not deductible unless that person is also your employee and has a bona fide business reason for taking the trip that would justify claiming a deduction if the person took the trip on his or her own.

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image Filing Tip
How Much To Deduct for Spouse
If your spouse accompanied you on a business trip, your bills will probably show costs for both of you. These usually are less than twice the cost for a single person. To find what you may deduct where your spouse’s presence is for personal and not qualifying business reasons, do not divide the bill in half. Figure what accommodations and transportation would have cost you alone and deduct that. The excess over the single person’s costs is not deductible.
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Even though the travel costs of a non-employee spouse or other person are not deductible, you may deduct the cost of such person’s participation in the entertainment of business clients at conventions or business trips if the trip or entertainment meets certain tests (20.22). Generally, you may deduct the cost of goodwill entertaining of associates immediately before or after convention business meetings. A convention meeting qualifies as a bona fide business meeting.

EXAMPLES
1. You and your spouse travel by car to a convention. You pay $200 a day for a double room. A single room would have cost $150 a day. Your spouse’s presence at the convention was for social reasons. You may deduct the total cost of operating your car to and from the convention city. You may deduct $150 a day for your room. If you traveled by plane or railroad, you would deduct only your own fare.
2. Connie worked with her husband operating a home improvement contracting business. With him, she attended trade shows and conventions, where they ran a display booth. There, she talked about their company’s services and solicited new business. The IRS disallowed the company’s deduction of her travel expenses as having no business purpose. The Tax Court disagreed. Both Connie and her husband were officers and employees of the company. They attended the conferences together. As the IRS allowed her husband’s expenses, it should have also allowed expenses attributed to her participation, especially as they were incurred together as employees.
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