TD 9696 finalizes rules that the IRS put into effect in 2012 which allow employees to deduct certain expenses paid or incurred for local lodging as business expenses. Taxpayers may deduct certain expenses for lodging when not traveling away from home (local lodging). These include local lodging expenses that are considered ordinary and necessary business expenses in approp...riate circumstances.
Some of these circumstances include:
•The lodging is necessary for the individual to participate fully in or be available for a bona fide business meeting, conference, training activity or other business function.
•The lodging is for a period that does not exceed five calendar days and does not recur more frequently than once per calendar quarter.
•If the individual is an employee, the employee’s employer requires the employee to remain at the activity or function overnight.
•The lodging is not lavish or extravagant under the circumstances and does not provide any significant element of personal pleasure, recreation or benefit.