Instructions For Schedule C (2015) (Page 9 of 18) in pdf

do not include expenses for laundry,

rentals and tickets to entertainment

Daycare providers. If you qualify as a

cleaning and pressing of clothing, lodg-

events. See chapters 1 and 2 of Pub.

family daycare provider, you can use the

ing taxes, or the costs of telegrams or

463.

standard meal and snack rates, instead of

telephone calls. You cannot use this

Standard meal allowance. Instead of

actual costs, to figure the deductible cost

method on any day that you use the

deducting the actual cost of your meals

of meals and snacks provided to eligible

standard meal allowance

(as explained

while traveling away from home, you

children. See Pub. 587 for details, in-

in Line 24b, later).

can use the standard meal allowance for

cluding recordkeeping requirements.

You cannot deduct expenses for at-

your daily meals and incidental expen-

Line 25

tending a convention, seminar, or simi-

ses. Under this method, you deduct a

lar meeting held outside the North

specified amount, depending on where

Deduct utility expenses only for your

you travel, instead of keeping records of

American area unless the meeting is di-

trade or business.

your actual meal expenses. However,

rectly related to your trade or business

Local telephone service. If you used

and it is as reasonable for the meeting to

you must still keep records to prove the

your home phone for business, do not

be held outside the North American area

time, place, and business purpose of

deduct the base rate (including taxes) of

as within it. These rules apply to both

your travel.

the first phone line into your residence.

employers and employees. Other rules

The standard meal allowance is the

But you can deduct any additional costs

apply to luxury water travel.

federal M&IE rate. You can find these

you incurred for business that are more

rates on the Internet at

For details on travel expenses, see

than the base rate of the first phone line.

Click on “Per Diem Rates” for links to

chapter 1 of Pub. 463.

For example, if you had a second line,

locations inside and outside the conti-

you can deduct the business percentage

Line 24b

nental United States.

of the charges for that line, including the

See chapter 1 of Pub. 463 for details

base rate charges.

Enter your total deductible business

on how to figure your deduction using

meal and entertainment expenses. This

Line 26

the standard meal allowance, including

includes expenses for meals while trav-

special rules for partial days of travel.

eling away from home for business and

Enter the total salaries and wages for the

Amount of deduction. In most cases,

for meals that are business-related enter-

tax year. Do not include salaries and wa-

you can deduct only 50% of your busi-

tainment.

ges deducted elsewhere on your return

ness meal and entertainment expenses,

Deductible expenses. Business meal

or amounts paid to yourself. Reduce

including meals incurred while away

expenses are deductible only if they are

your deduction by the amounts claimed

from home on business. However, for

(a) directly related to or associated with

on:

individuals subject to the Department of

the active conduct of your trade or busi-

Form 5884, Work Opportunity

Transportation (DOT) hours of service

ness, (b) not lavish or extravagant, and

Credit, line 2;

limits, that percentage is increased to

Form 8844, Empowerment Zone

80% for business meals consumed dur-

is present at the meal.

Employment Credit, line 2;

ing, or incident to, any period of duty for

You cannot deduct any expense paid

Form 8845, Indian Employment

which those limits are in effect. Individ-

or incurred for a facility (such as a yacht

Credit, line 4; and

uals subject to the DOT hours of service

or hunting lodge) used for any activity

Form 8932, Credit for Employer

limits include the following.

usually

considered

entertainment,

Differential Wage Payments, line 2.

Certain air transportation workers

amusement, or recreation.

(such as pilots, crew, dispatchers, me-

Do not reduce your deduction for any

Also, you cannot deduct membership

chanics, and control tower operators)

portion of a credit that was passed

dues for any club organized for busi-

who are under Federal Aviation Admin-

through to you from a pass-through enti-

ness, pleasure, recreation, or other social

istration regulations.

ty.

purpose. This includes country clubs,

Interstate truck operators who are

If you provided taxable fringe

golf and athletic clubs, airline and hotel

under DOT regulations.

benefits to your employees,

clubs, and clubs operated to provide

Certain merchant mariners who are

such as personal use of a car,

meals under conditions favorable to

CAUTION

under Coast Guard regulations.

do not deduct as wages the amount ap-

business discussion. But it does not in-

However, you can fully deduct meals,

plicable to depreciation and other ex-

clude civic or public service organiza-

incidentals, and entertainment furnished

penses claimed elsewhere.

tions, professional organizations (such

or reimbursed to an employee if you

as bar and medical associations), busi-

properly treat the expense as wages sub-

In most cases, you are required to file

ness leagues, trade associations, cham-

ject to withholding. You can also fully

Form W-2, Wage and Tax Statement,

bers of commerce, boards of trade, and

deduct meals, incidentals, and entertain-

for each employee. See the General In-

real estate boards, unless a principal pur-

ment provided to a nonemployee to the

structions for Forms W-2 and W-3.

pose of the organization is to entertain,

extent the expenses are includible in the

or provide entertainment facilities for,

Line 30

gross income of that person and reported

members or their guests.

on Form 1099-MISC. See Pub. 535 for

There are exceptions to these rules as

Business use of your home. You may

details and other exceptions.

well as other rules that apply to skybox

be able to deduct certain expenses for

C-9

Instructions For Schedule C (2015) Page 9

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