How does a minister treat trips that are partially personal or involve foreign travel?
Deriving some personal pleasure from a trip doesnt disqualify it from being deductible. The IRS does, however, apply some important twists to the tax treatment of foreign travel expenses. If youre traveling within the United States, you can deduct all transportation costs, plus the costs of business related meals (subject to the 50% limit) and lodging, if business was the primary reason for the trip. If the trip is primarily personal, none of your transportation costs can be deducted, but you can deduct other business related travel expenses. If you are traveling outside the United States, expenses are subject to a strict set of rules depending on whether the trip is entirely business, primarily business, or primarily personal. If you are reimbursed for travel expenses and adequately account to the church, you should not report your travel expenses on Form 2106 or Schedule C. Further, you are not subject to the 50% limitation for business meals and entertainment. Return to questions.
