Q. When taking a long business trip (over 6000 miles of estimated driving) and portions of the trip will be used to visit friends and relatives, what is the best method to keep track of which expenses are deductible for business versus those that could be considered personal?

A: First of all, personal enjoyment on a business trip will not preclude the trip expenses from being deductible. However, the personal visits should be incidental to the trip, and not the primary reason for the trip. Therefore, you do not need to "pro rate" expenses such as the actual travel, hotel room, meals, etc. The point is that the expenses are incurred as ordinary and necessary business expenses in connection with your business trip.

The best rule for keeping track of business v. personal expenses is good old common sense. The dinner bill while you are out with your friends should probably be considered personal, unless of course, you are discussing business. Then that may well be deductible as well. If indeed the personal part of the trip is incidental to the trip as a whole, I would only consider as personal expenses those costs incurred on the personal parts of the trip. 

The IRS has a very good publication to help you with this information: Publication 463-Travel, Entertainment, Gift and Care Expenses. You can download it from the IRS for free at http://www.irs.ustreas.gov/plain/forms_pubs/pubs.html.

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