Drilling Into Money Not Boring by Mark E. Battersby Tax Deductible Shows Industry events such as the National Drilling Association’s DRILLEXPO, and other conventions and trade shows, are a good way to gain know-how, find new suppliers, promote the business, capture marketplace intelligence, generate leads, and network with other industry professionals. Thanks to our tax laws, the government will pick up the tab, in the form of tax deductions, for a sizable portion of the expenses of attending events - if it is “business-related” and the rules are followed. Naturally, when it comes to events for investment, political, social, or other purposes unrelated to business, only a limited expense deduction may be available. The recently passed Budget Reconciliation law, the so-called “One Big Beautiful Bill Act,” continued to limit some of the expenses of convention attendees and everyone else traveling away from home on business, allowing a deduction of only 50% of their meal cost. Fortunately, there are gray areas in both the new and existing rules for convention attendance expenses. If, for instance, the business foots the bill to take employees to a conference, the full amount of their meals is deductible by the drilling business. On the other hand, a meal which immediately precedes or follows a substantial business meeting, 50% of the cost associated with entertainment can be deducted - so long as the entertainment was not “lavish or extravagant.” If a supplier provides meals in a hospitality suite at a convention with the clear intent of generating business, the cost is deductible. Other meals purely for goodwill purposes don’t qualify as directly related to either the supplier or the drilling operation. Generally, only a drilling operation or someone who is self-employed can deduct ordinary and necessary expenses incurred when traveling on business. Meeting the requirement of being “ordinary and necessary” business expenses, and if the trip is completely business-related, the full amount is deductible for expenses. Attending trade shows, conventions, conferences, and other events can be a great way for drilling business owners and self-employed drilling professionals to keep themselves and their employees current on industry developments. Best of all, the costs of attending or participating in these events may be tax deductible. Naturally, deducting show attendance costs requires recordkeeping which clearly shows the business purpose of these or other expenses to secure any deduction. The complexity and ever-changing rules may make professional guidance necessary for every drilling entity to successfully reap all write-offs they are entitled to. Mark Mark E. Battersby may be contacted via e-mail to michele@worldwidedrillingresource.com j Sand j Manholes j Bentonite j Filter Sock j Sampling Bailers j Clear PVC Pipe j Locking Caps Atlantic Screen & Mfg., Inc. Manufacturers of Slotted & Perforated Pipe Ranging from 1/2” to 24” in Diameter 302-684-3197 FAX 302-684-0643 142 Broadkill Rd j Milton, DE 19968 www.atlantic-screen.com e-mail:sales@atlantic-screen.com Truth will ultimately prevail where pains is taken to bring it to light. ~George Washington (1732-1799) Celebrating 250 Years I thought growing old would take longer. Think about this . . . I came, I saw, I forgot what I was doing, retraced my steps, got lost on the way back . . . now I have no idea what’s going on! Don’t you hate it when you see an old person, then realize you went to high school together? Want more like this to brighten your day? 850-547-0102 36 OCTOBER 2025 WorldWide Drilling Resource®
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