What taxpayers need to know about business related travel deductions

Business travel can be costly. Hotel fees, plane or train tickets, cab fares, and public transportation can add up quickly. The good news is that business travelers may be able to deduct some of these expenses when they file their taxes.

Here are some specifics on these valuable deductions that every business traveler should be aware of.

When employees must travel away from their tax home or principal place of work for business reasons, they can claim business travel deductions. The trip period must be significantly longer than a typical day's work, and there must be a need for sleep or rest to meet the demands of the task while gone. Travel costs must be reasonable and essential.

Travel expenses while away from home that are deductible include:

• Travel between your home and your work destination by airline, rail, bus, or car

• Taxi or other modes of transportation between an airport or train station and a hotel, or from a hotel to a work location

• Transportation of luggage and sample or display materials between regular and temporary work locations

• Using a personal vehicle for business purposes, which may result in an increase in mileage rates

• Lodging and non-entertainment-related meals

• Dry cleaning and laundry

• Business calls and communication

• Tips paid for services associated with any of these expenses

Other comparable regular and necessary business-related expenses, deductions for travel made on a self-employed basis:

• Self-employed individuals can deduct travel expenditures on Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship)

• Farmers can use Schedule F (Form 1040), Profit or Loss from Farming 

This document is designed for general information only. The information presented on this document should not be construed to be formal legal or tax advice nor the formation of a lawyer/client relationship. 

For more information on this and other topics, please contact Kevin via any of the channels listed below: 📧kevin@kmckernan.com or 📞718-317-5007