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March 13, 2021
Question

Self Employed Wine Consultant

  • March 13, 2021
  • 1 reply
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As a wine consultant we purchase numerous wines as market research to maintain knowledge for wine tastings.  Is the purchase of wine and traveling to wineries deductible?

    1 reply

    March 15, 2021

    Yes, the cost of wine and travel to wineries would be deductible expenses for a bona fide wine consultant. Both expenses would qualify as "ordinary and necessary" in conducting a wine consulting business. 

     

    From the IRS What Can I Deduct?:  To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.

     

    Only business-related expenses are deductible. Since wine and travel can also be considered as personal expenses, make sure you are operating as a business - not a hobby.

     

    See Is it a hobby or a business? for considerations in determining whether your activity is a business.