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What’s Considered a Business Travel Expense and Can You Deduct It?

man with suitcase walking Determining what’s a business travel expense and what’s not can be a very gray area. Find out how to clear up the confusion.

Essentially, to be considered a business travel expense, the main question to ask yourself is, “Did this expense go towards moving my business forward?” If you can answer that question with a “yes,” here’s what you need to know about what you can deduct on your taxes.

You can deduct business expenses related to travel, such as, transportation, meals, lodging and entertainment.

Common Transportation Deductions

  • Airline Tickets
  • Rental Cars
  • Taxis
  • Trains
  • Personal Car Mileage ($0.56 per mile as of 2014)
  • Tips to Drivers
  • Parking

Common Meals Deductions (Deductions for meals is limited to 50 percent of the costs)

  • Breakfast
  • Lunch
  • Dinner
  • Snacks (at the airport, for example)

Common Lodging Deductions

  • Room Rate + Applicable Taxes
  • Tips (to valets, for example)
  • Parking
  • Wifi charges necessary to doing business
  • Laundry/Dry Cleaning

Common Entertainment Deductions 

(This one is more gray and more scrutinized by the IRS. Be sure you can prove the entertainment expense was directly related to the betterment of your business. Also only 50% of the amount is usually deductible.)

  • Golf
  • Cocktails
  • Convention Receptions
  • Nightclub Admission
  • Sports Arena Parking

We’re here to help you deduct all the expenses you’re entitled to. Give us a call today!

Do you have the support you need to manage your small business bookkeeping? Schedule a 30-minute appointment to speak with a local small business adviser.

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