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MotorbikeMike
LSU Fan
Chackbay
Member since Feb 2009
76 posts

Travel Expenses for Travel Agents
Any of you tax professionals out there ever dealt with travel expenses for travel agents? I have a client that would like to deduct some of the expenses of her trip to Disney with her family because she sells Disney vacations and the experiences help her server her clients. I've done some searching and can't find any good or bad on how to advise on this. My first thoughts are to keep it reasonable if we use any.

What do you think?


LSUFanHouston
LSU Fan
NOLA
Member since Jul 2009
9580 posts

re: 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.


LSUAfro
LSU Fan
Baton Rouge
Member since Aug 2005
12744 posts

re: Travel Expenses for Travel Agents
quote:

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

quote:

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

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


MotorbikeMike
LSU Fan
Chackbay
Member since Feb 2009
76 posts

re: Travel Expenses for Travel Agents
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


VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
19643 posts

re: Travel Expenses for Travel Agents
quote:

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


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


AmeriKop45
LSU Fan
Coach, Wing Tip Seat
Member since Jan 2016
2078 posts

re: Travel Expenses for Travel Agents
quote:

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


This post was edited on 4/12 at 8:23 am


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LSUFanHouston
LSU Fan
NOLA
Member since Jul 2009
9580 posts

re: Travel Expenses for Travel Agents
quote:

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


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.


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LSUFanHouston
LSU Fan
NOLA
Member since Jul 2009
9580 posts

re: Travel Expenses for Travel Agents
quote:

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


Research and development costs... LOL... that's a bit aggressive.


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