Traveling for business, are you missing out?

Updated: Aug 2

Business travel deductions and what you need to know.



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Travel deductions include:

• 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 to a hotel, 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 which can include an increase in mileage rates.

• Lodging and non-entertainment-related 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.


Rules for travel deductions:

  • Business travel deductions are available when employees must travel away from their tax home or main place of work for business reasons.

  • The travel period must be substantially longer than an ordinary day's work and a need for sleep or rest to meet the demands the work while away.

  • Travel expenses must be ordinary and necessary. They can’t be lavish, extravagant or for personal purposes.

  • Employers can deduct travel expenses paid or incurred during a temporary work assignment if the assignment length does not exceed one year.

  • Travel expenses for conventions are deductible if attendance benefits the business and there are special rules for conventions held outside North America.

Self employed or a Farmer:

• Those who are self-employed can deduct travel expenses on Schedule C ,Form 1040, Profit or Loss From Business, Sole Proprietorship.

• Farmers can use Schedule F, Form 1040, Profit or Loss From Farming.


Military:

National Guard or military reserve servicemembers can claim a deduction for unreimbursed travel expenses paid during the performance of their duty.


Conclusion

Keep organized records and receipts of all your travel expenses. It could save you real money when it comes time to pay taxes and enter your deductions.



*Not official financial advise.

All this information is from the IRS



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