So what if the trade convention you attended was held in New Orleans, during Mardi Gras and ordered breakfast in bed everyday? It’s still a business expense, as long as you can document your claims.
What would the IRS consider adequate when it comes to claiming deductions for travel, entertainment, transportation or gifts? The IRS needs “documentary” evidence to support your deduction claims.
Documentation involves paperwork (i.e. receipts, bills, contracts, etc.) that confirms the amount you spent, when and where you spent it and some information that identifies what the expense includes.
If you’re unsure whether an expense is eligible for deduction contact your tax professional. And, no, you can’t write-off the gift for your cousin’s wedding because you bought it while you were in New Orleans.