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Travel Strategy for F flyer and Y companion

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Travel Strategy for F flyer and Y companion

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Old May 5, 2021, 9:14 am
  #16  
 
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Originally Posted by Antarius
You're not reimbursed more than you spend. One ticket was purchased and used for X amount. It's not like the OP purchased a J ticket and then rebooked themselves to Y and pocketed the difference. One J ticket was paid for and used.

As for disclosure, sure no disagreement. I've never had a problem telling a client or a supervisor that I'm flying to Europe instead of California. If the cost is the same, it's a wash. If it's more, I pay the difference and if it's less, I expense the lower amount.

At the end of the day, the CTC is X. Whether that's used for you to go home, you to go elsewhere or your SO or friend to come visit you is immaterial.
​​​​​
You disclosed that you flew coach (one way or round trip)but billed the cost a a business class ticket?

The cost to travel in Y
is much less than to travel in J. If the agreement is to bill the business class cost, that’s one thing, if it’s billing actual costs, then it’s a lie.

No difference between pocketing the difference between Y and J and you buying a Y ticket and letting your spouse use the J ticket. If this was fine, just have the J ticket issues in your spouses name.

perhaps you are applying my vommrmts to a different situation, that doesn’t involve another person using your ticket.

Last edited by beachfan; May 5, 2021 at 10:22 am
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Old May 5, 2021, 4:14 pm
  #17  
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Originally Posted by beachfan
You disclosed that you flew coach (one way or round trip)but billed the cost a a business class ticket?

The cost to travel in Y
is much less than to travel in J. If the agreement is to bill the business class cost, that’s one thing, if it’s billing actual costs, then it’s a lie.

No difference between pocketing the difference between Y and J and you buying a Y ticket and letting your spouse use the J ticket. If this was fine, just have the J ticket issues in your spouses name.

perhaps you are applying my vommrmts to a different situation, that doesn’t involve another person using your ticket.
My point is that the company spent the same amount of money and you did not pocket anything that could be construed as income. If you choose to give up your J seat and sit in Y or switch seats in J or upgrade to F or choose to fly somewhere completely different is immaterial to the company.

What about flying your SO or family or a friend to visit you instead of flying home? Companies allow this all the time too. In this case, another person is literally using your ticket.

You're not making money, they're not losing money. Apart from some real micromanagey types, no one cares. My last client used to start the Monday meetings with "where did Antarius choose to go this weekend"
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Old May 5, 2021, 5:32 pm
  #18  
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This is all on my own dime.

On the few occasions I fly when I'm reimbursed, I usually fly F but bill the sponsor for Y. Because it's business and I'm self-employed, I am able to deduct the difference as a business expense. IRS definition of "ordinary and reasonable" expense does not exclude first class air travel.
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Old May 5, 2021, 5:38 pm
  #19  
 
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Originally Posted by redtop43
This is all on my own dime... IRS definition of "ordinary and reasonable" expense does not exclude first class air travel.
My accountant says otherwise .
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Old May 5, 2021, 6:12 pm
  #20  
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Originally Posted by metallo
My accountant says otherwise .
Get a new accountant. I have a meeting with mine every morning, when I shave.
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Old May 5, 2021, 6:21 pm
  #21  
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Originally Posted by redtop43
Get a new accountant. I have a meeting with mine every morning, when I shave.
The regulations says reasonable, not cheap.

If you normally fly J/F then its reasonable. I am unaware of any IRS regulation that says one must fly Spirit. Reasonable is subjective.
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Old May 5, 2021, 9:06 pm
  #22  
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Originally Posted by Antarius
The regulations says reasonable, not cheap.

If you normally fly J/F then its reasonable. I am unaware of any IRS regulation that says one must fly Spirit. Reasonable is subjective.
I didn't want to get into an extended debate on a travel board about tax policy, but if you took this to the extreme then all business travelers would have to take Super Shuttle and eat at Burger King.

Businesses are generally allowed to deduct the cost of private jets for employees if they are used for business travel. In practice of course this is usually limited to a small sliver of the staff, but I worked for a company that owned a couple of jets and had a regular shuttle between the four regional offices and the home office. The home office was located in a relatively remote area of Wisconsin. One time I flew commercial, and including a drive from the far-out suburbs to BOS, a connection through ORD, and a 25-mile drive from the airport to the office, it took about 8 hours. The next time I caught a ride on the company plane and it was about 2 1/2 hours door to door.
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Old May 5, 2021, 9:16 pm
  #23  
 
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Originally Posted by redtop43
Get a new accountant. I have a meeting with mine every morning, when I shave.
No offense, but anyone meeting with their accountant that often shouldn't be worried about how to get a companion into J. The purpose of my posting in this thread really wasn't to offer tax advice, as I'm certainly not qualified to do so.

My apologies for apparently misinterpreting the seat swap stuff up-thread... not sure why I assumed you wanted to switch seats mid-flight after re-reading the posts.

Bottom line, best to just buy J or use miles for your companion if you have the means to do so.

Last edited by metallo; May 5, 2021 at 9:21 pm
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Old May 5, 2021, 9:20 pm
  #24  
 
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Originally Posted by metallo
No offense, but anyone meeting with their accountant that often shouldn't be worried about how to get a companion into J. The purpose of my posting in this thread really wasn't to offer tax advice, as I'm certainly not qualified to do so.
You might have missed the joke...?
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Old May 5, 2021, 9:30 pm
  #25  
 
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Originally Posted by platbrownguy
You might have missed the joke...?
What was the joke? I didn't believe he really meets with his accountant every morning while shaving lol.
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Old May 5, 2021, 9:44 pm
  #26  
 
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Originally Posted by Antarius
My point is that the company spent the same amount of money and you did not pocket anything that could be construed as income. If you choose to give up your J seat and sit in Y or switch seats in J or upgrade to F or choose to fly somewhere completely different is immaterial to the company.

What about flying your SO or family or a friend to visit you instead of flying home? Companies allow this all the time too. In this case, another person is literally using your ticket.

You're not making money, they're not losing money. Apart from some real micromanagey types, no one cares. My last client used to start the Monday meetings with "where did Antarius choose to go this weekend"
I am only talking about a ticket you give to someone else, but claim you used it personally.

your name must match the ticket getting through security I don’t understand how what you say could happen.

Last edited by beachfan; May 5, 2021 at 9:55 pm
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Old May 5, 2021, 9:49 pm
  #27  
 
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Originally Posted by metallo
What was the joke? I didn't believe he really meets with his accountant every morning while shaving lol.
Then you got it...the accountant appears in the mirror every morning, and they both use Turbotax.

Seriously, in my (layman's) experience there are zero IRS issues with first/business bookings...if the trip itself is deductible, anything from Spirit to private can be expensed. When the purpose of travel slides into the area of a perk, things start to get tricky. International travel in general can be subject to significantly more scrutiny as well.
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Old May 5, 2021, 9:52 pm
  #28  
 
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Originally Posted by redtop43
This is all on my own dime.

On the few occasions I fly when I'm reimbursed, I usually fly F but bill the sponsor for Y. Because it's business and I'm self-employed, I am able to deduct the difference as a business expense. IRS definition of "ordinary and reasonable" expense does not exclude first class air travel.
Agree with that. But you are saying the F ticket is yours, or is it that your spouse flying in F, and you are claiming your wife ticket is a valid business expense.
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