Investopedia

Overnight Sleep Test

Dictionary Says

Definition of 'Overnight Sleep Test'

A criterion that determines whether meals eaten alone while working are tax deductible. To be considered a tax-deductible business expense, meals eaten alone must be eaten when the person is doing business away from home for long enough and/or far away enough that an overnight stay is required.
Investopedia Says

Investopedia explains 'Overnight Sleep Test'

For example, if Zoe drives across town for a business meeting, then stops at a restaurant afterward for a meal, the meal will not be tax deductible because she dined in the general vicinity of her office. She did not stay overnight anywhere, so the expense does not meet the overnight sleep test. If Zoe's office is in Los Angeles and she flies to Denver for a business meeting, then has lunch at the airport and returns to Los Angeles the same day, the lunch is still not tax deductible.

Articles Of Interest

  1. Save On Planes, Trains And Automobiles

    Getting to, and around, your travel destination doesn't need to break the bank.
  2. 7 Ways To Save On Summer Getaways

    Find out how to have a fun and budget-friendly summer adventure.
  3. Travel Tips For Keeping You And Your Money Safe

    Take precautions to avoid being taken advantage of on your vacation.
  4. Drawbacks Of Travel Reward Programs

    These nearly universal loyalty programs can have handy perks, but they're not a free ride.
  5. Globetrotting On A Budget

    Don't let a shoestring budget trip-up your vacation plans.
  6. Travel Smart By Planning How You'll Pay

    With a little pre-trip planning, you can avoid being stranded without adequate funds.
  7. Shoulder Season: Your Ticket To The Perfect Vacation

    Traveling during the sweet spot between high season and off season can save you money and stress.
  8. How To Get The Most Out Of Hiring An Accountant

    When you hire an accountant, getting good tax advice going forward is as valuable as – or perhaps even more valuable than - getting the previous year’s taxes filed correctly. Learn what you need ...
  9. 6 Financial Benefits Of Spring Cleaning

    This year, combine your spring cleaning strategies with your big-picture financial objectives.
  10. IRS Special Enrollment Examination (SEE) Study Guide

    The enrolled agent status is the highest credential awarded by the IRS.
comments powered by Disqus
Marketplace
Hot Definitions
  1. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.
  2. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.
  3. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.
  4. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.
  5. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.
  6. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.
Trading Center