Transcript:

When you have a primary purpose business trip, but that includes some tag along personal entertainment passengers – that will often lead to reduction in tax deductions. If those passengers are either themselves specified individuals, meaning that they are owners, related to owners, or high ranking individuals or they are invited by specified individuals, then tax deductions will generally be lost. The amount that would be rendered non-tax deductible is based on the per capita presence of these [inaudible 00:00:37] passengers on a trip. For example, if 1/3 of the passengers on board the trip were there for entertainment, then 1/3 of the cost of that trip would become non-deductible.