What Counts as a Business Trip?
- Travel must be “ordinary and necessary” for your business.
- It should primarily be for business purposes (work, meetings, conferences, etc.).
- Those who are self-employed can deduct travel expenses on Schedule C (Form 1040), Profit or Loss From Business (Sole Proprietorship).
Deductions You Can Claim:
1️ Transportation: Flights, trains, buses, or rental cars to your business destination.
2️ Lodging: Hotels or other accommodations while away from home.
3️ Meals: 50% of your business-related meals while traveling.
4️ Local Transportation: Taxis, rideshares, or parking fees at your destination.
5️ Internet & Phone: Work-related Wi-Fi or phone charges during your trip.
6️ Conference Fees: Registration costs for workshops or events.
Deductible travel expenses include (posted on the IRS website):
- Travel by airplane, train, bus or car between your home and your business destination.
- Fares for taxis or other types of transportation between an airport or train station and a hotel, or from a hotel to a work location.
- Shipping of baggage and sample or display material between regular and temporary work locations.
- Using a personally owned car for business.
- Lodging and meals.
- Dry cleaning and laundry.
- Business calls and communication.
- Tips paid for services related to any of these expenses.
- Other similar ordinary and necessary expenses related to the business travel.
What’s Not Deductible?
- Personal activities or extra days spent for leisure.
- Family members’ travel expenses (unless they’re employees traveling for business).
Pro Tips for Travel Deductions:
📌 Document Everything: Keep receipts for all expenses and note the business purpose of your trip.
📌 Blend Business & Leisure: If part of your trip is personal, only the business-related portion is deductible.
💼 Bonus: Travel often? Use apps or work with a tax professional to make tracking deductions effortless.
🛫 Let us help you navigate the ins and outs of tax deductions! Contact Maribeth and the team for expert advice.
Contact Oak City Accounting for business expenses
At Oak City Accounting, we offer expert tax preparation, tax planning, and bookkeeping services to clients from a wide range of industries and backgrounds. Our CPAs and accounting teams are dedicated to identifying valuable deductions and credits, while also helping you develop personalized, long-term financial strategies for lasting success. Whether you're an individual or a business, we're here to guide you through every step of the process. For professional accounting services, please contact us at 919-268-8060 or complete the form below, and we’ll be in touch shortly.
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