For business owners, business travel can get extremely expensive. Many businesses require some travel at any point. Whether it is driving across town often or flying across the country, it can add up. Some aspects of business travel are tax-deductible though (as long as you keep receipts); however, some are not. How can you tell which is which? Check out this post from our friends at Southgate Executive Lodging for some insight in tax-deductible business travel.
Business travel, whether for a quick trip or extended stay, can wear on any of us. For most business owners the biggest place this is felt is in their bank accounts. From lodging to meals and transportation, business travel charges can add up quickly. Fortunately, most of these expenses are tax-deductible.
Now that this year’s tax season dust has settled, let’s take a closer look and clearly define what you can, and can’t, write off as a business travel expense on your tax return.
The IRS defines business travel as any travel that is “longer than an ordinary’s day of work”, requires you to sleep away from home and is temporary (i.e. less than a year).
The IRS requires that business travel expenses be, “ordinary and necessary expenses incurred while carrying on your trade or business.”
The following business expenses will generally qualify as tax-deductible. Don’t forget, always save your receipts!
Trains, planes or automobiles…no matter how you get to your business-related meeting or event, the expense can be deducted. And once you get to your final destination? Any transportation or fees associated with the trip are deductible as well. This includes taxis, Uber or Lyft, rental cars, tolls and parking. Don’t forget that you can also…