Investopedia

Continue to Site »

Primary Business Purpose

Filed Under »
Dictionary Says

Definition of 'Primary Business Purpose'

A phrase denoting that the main intent of traveling out of town was to transact business. This trip may be combined with pleasure, but the primary purpose of the trip must be for business. If the business element of the trip were removed, the trip would not be taken.

Investopedia Says

Investopedia explains 'Primary Business Purpose'

As long as the primary business purpose can be proven, the taxpayer may deduct all transportation and lodging costs, as well as 50% of meal expenses. This can be done even though part of the trip is for pleasure. However, if the main purpose of the trip is pleasure, then no expenses of any kind are deductible. Generally, the amount of time spent pursuing business versus pleasure activities is the determining factor in establishing primary business purpose. Keeping a log to document business activities is usually acceptable proof of business purpose in the event of an audit by the IRS.

Articles Of Interest

  1.

    Start Your Own Small Business

    Quit your job, be your own boss and earn a paycheck. Find out what to do to make it happen.

  2. Top Tax Deductions For Brokers

    If you are paying out of pocket, you can make your business expenses work for you at tax time.

  3. 7 Ways To Save On Summer Getaways

    Find out how to have a fun and budget-friendly summer adventure.

  4. Six Steps To A Better Business Budget

    This easy but essential process helps owners ensure that their businesses can stay afloat.

  5. $1 Salaried CEOs Making Millions

    Some CEOs who are paid $1 annually are actually among the highest-paid when all forms of compensation are taken into account.

  6. 6 Ways To Avoid Paying For Hotel Wi-Fi

    Use these tips to get free Internet access when you're on vacation.

  7. 5 Ways You Can Get Paid To Travel

    Whether it's being a travel writer or teaching English overseas, there are many ways you can make a living traveling the world.

  8. Best Credit Cards For Travel Deals

    A wide range of rewards credit cards are available for consumers to use toward airfare, hotel bills, rental cars and more.

  9. How Inflation Has Affected Transportation Prices

    Getting around today is less expensive than it was 10 years ago, and this downtrend shows no signs of stopping.

  10. What You Need To Know About Airline Baggage Fees

    It might surprise you just how much airlines are charging for additional baggage.
comments powered by Disqus
Marketplace
Hot Definitions

  1. 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.

  2. 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.

  3. 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.

  4. Cost-Push Inflation

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

  5. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  6. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.
Trading Center