Travel Expenses for Business Travelers and What is Tax Deductible
By Marcus January 23, 2016
Catering to the guidelines of which travel expenses are tax deductible is one of the most important business expense deductions for small businesses and business travelers. However, many of these rules must to be followed carefully. And with tax season underway, we provided a simple list of which travel expenses you can write off. We promise not fill your brain with a lot of tax jargon.
What is considered a travel expense?
Travel expenses are amongst the most common and confusing business expense deductions. It leaves you asking what is considered a travel expense? As you’re filing last minute, be aware of what of the list of expenses you may be able to deduct depending on the facts and guidelines written from the IRS.
Planes, trains and automobiles
Lets say you book an airport shuttle with us to take you between the airport and your hotel or the hotel to the client’s work location and vice versa. You can use the transportation as a travel expense. Choosing the cheapest option of travel isn’t necessary for deducing your transportation expense, but choosing the more suitable is. First class flights are permissible; you could book executive motor coaches for you and your coworkers as well.
Hotels and Lodging:
You can deduct 50 percent of your lodging expenses for any business trip that is long enough to require an overnight stay. However, if you bring a spouse or partner who doesn’t have a business reason to be with you, you’ll only be able to deduct the cost of the room you would pay if you were traveling alone.
Give them a reason:
The most effective and efficient way is to keep track of all receipts and records. If you traveling for business and your company doesn’t reimburse you for all your expenses, you can deduct any out-of-pocket expenses that exceeds 2 percent of your adjusted gross income.
A Business traveler’s work is never finished.
To make your entire trip deductible, your purpose has to be strictly business, so you may be working a convention all weekend in another state and decide to take that Monday off to recuperate, you won’t be able to expense that last, so hold on to those vacation days. There’s nothing wrong with mixing business with pleasure, just as long as you’re clear about it. Dinners, drinks, etc. These are things you can expense, and when you do your taxes, just add up the amounts and deduct 50 percent of the cost.