Travel Expenses for Travel Agents

I have several stay at home moms who are also Disney "travel agents". Every once in a while, one of them will even make a sale once a year!!!

Here is our guideline for our clients who wish to write off four family vacations to the mouse a year.

1) If it's a legit training type program - and there are ones out there that are legit - then we let them deduct the cost - but only their cost. If the family comes along, we allocate expenses to deduct by not taking any additional expenses incurred due to the family.

2) Beyond that, we generally tell them they can take one fact-finding trip per year with the family - again, only allocating expenses that are for the agent.

3) Any trips they take without family, we generally tell them they can deduct.

The biggest issue you have is here hobby vs business. We have a conversation with them to ensure that there are things they are doing to actually be a business - are they advertising, do they have licenses/certifications/memberships, etc.

And if they go three years in a row without selling a vacation package, we tell them no more.

No problem as far as Income. These ladies really do sell vacations ($14k profit in their LLC). They are looking to use the trips as unreimbursed expenses on 2106. In some regards I think even the expenses for their kids is doable since they are leaning how their kids react and can advise clients accordingly

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In some regards I think even the expenses for their kids is doable since they are leaning how their kids react and can advise clients accordingly

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You've got to be kidding me. I believe there is plenty of data already available on how kids react to Disney World.

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Interesting. You allow some of them to go 3 years without revenue?

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I worded that poorly. If they go three years in a row without selling a package, on the third year, we don't take any deductions. So really it's two.

If they go three out of five years showing a loss, we have a long discussion about hobby vs business.