Meal Expenses For House Sitters

Hi June,

My name is Megan and I'm from Portland, OR. I've recently ordered your book and am looking forward to receiving it.

I've worked on the side as an indie house and petsitter off and on since 2001. I mostly move into people's houses for several nights or weeks and take care of their houses and furry kids while they are away. In recent years I've done this once every month or more, depending on the season.

I may be grasping at straws here but want to cover all of my bases...I'm wondering if my meals while I'm on the job are deductible as a business expense? I go grocery shopping and cook in the home that I'm staying in. If they are deductible and I don't have my receipts from last year, would it be appropriate to use the Standard Meal Allowance?

Thanks,
Megan


Dear Megan,

Meals are deductible as a business expense in only two situations.

1. You may deduct the cost of the meal if you take a business associate to a restaurant, you pay for yourself and the associate and there is a business reason for the meal.

2. You may deduct all costs of your own meals and snacks while traveling. You may use actual cost or the IRS per diem amount. Travel may be simply defined as staying overnight away from your tax home for a business reason . Tax home is the area where you live and generally work.


Were you my client I would not take a deduction for meals even though you stay overnight if you are pet or house sitting in the neighborhood, your town, close by. If you were a substantial distance from your tax home, then I would take meals deductions.

Other tax pros may take a more aggressive approach and deduct all meals while overnight.

Best,
June