Taxpayers can deduct all “ordinary and necessary expenses” paid in carrying on a trade or business. But they must prove that they’re entitled to the deductions claimed. In one case, the U.S. Tax Court ruled a married couple wasn’t entitled to deduct various business expenses for which they offered no valid or insufficient substantiation. For example, on business trips, they didn’t keep records about where meetings were held, or the purpose or the individuals with whom they met. Mileage expenses appeared to be nondeductible commuting expenses. And airfare, meals and lodging expenses were found to be partially for personal purposes and weren’t supported by credible records. (TC Memo 2022-113)
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