Are airfare and hotel deductible when commuting to work out of state?
I was hired 1-1/2 years ago as C.O.O. of a very small development company (an LLC) with the understanding my airfare and hotel expenses would be paid as part of my compensation package. My retired spouse and I bought a home in city one, state A, and my employer is in city two, state B. My usual work schedule for a two week period is to work 11 days straight in city two, state B, fly home for a 3 day weekend, and fly back to city two, state B, to repeat the cycle. The first year the airfare and lodging expenses were deductible by the company. The accountant for the company explained these expenses could not be deducted after the first year. The C.F.O. agreed to increase my compensation to cover the cost of the hotel and airfare, and the increased income taxes. Is there a legitimate method for either my employer, or myself, to deduct the airfare between city one, state A, and city two, state B, and the hotel expense in city two, state B?
Mike – The Alchemist