Tax Write-Offs: Do Travel Expenses Fall Under the Tax-Deductible Umbrella?


Definitely! If your business requires you to travel outside of the parameters of your usual place of business, the expense would qualify. According to the IRS, if you have an obligation "to be away from the general area of your tax home for a period substantially longer than an ordinary day's work, and you need to get sleep or rest to meet the demands of your work while away," you would fall under the umbrella of receiving a tax write-off for this business expense.

  • Percentage deductible: 100%

  • Eligibility: For a trip to qualify as business travel, it must be considered ordinary, necessary, and to a destination away from the taxpayer's resident state.

  • Example deductions:

  • Airplane, train, or bus ticket costs

  • Parking and toll fees

  • Taxis and other modes of transportation

  • Meals and lodging

  • Special considerations: Vacation expenses are exempt from a tax deduction. In the eyes of the IRS, a “vacation” is:

  • A trip where the majority of days away are not spent doing business.

  • A business trip that can’t be verified through correct documentation.

Check out the link below for a list of other tax deductions you can claim this tax season!


https://www.ritbsinc.com/small-business-tax-deduction-list


What questions do you have about tax season? We are here to provide help with tax preparation, accounting, payroll management, and business formation! R&I Tax and Bookkeeping is here to help! You may contact us via our 'Contact' page at https://www.ritbsinc.com/contact. We can also be reached via phone at 253-777-1106.


 

Osterhaus, E. (2021, February 1). Complete list of small business tax deductions (2021). QuickBooks. Retrieved December 16, 2021, from https://quickbooks.intuit.com/r/taxes/small-business-tax-deductions/


Topic no. 511 Business Travel expenses. Internal Revenue Service. (n.d.). Retrieved February 7, 2022, from https://www.irs.gov/taxtopics/tc511







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