What Qualifies as Tax Deductible Business Travel Expenses?

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Do you go on overnight business trips? Read this article learn what business travel expenses are write offs.

Whether the taxpayer is traveling as an individual (i.e. for their own business) or as an employee of another business, the IRS has rules about what qualifies as business travel, and business travel expenses.

Business travel is defined as taxpayer travel, away from their home, for work that includes overnight stay as a business requirement.

If the travel does not include overnight stay, then the incurred expenses do not qualify as business-related travel expenses. For details about what the IRS defines as “away from home” please review the article, IRS Business Travel Definition for “Away From Home”.

Related: The Complete List of Small Business and Self Employment Tax Write Offs

What business travel expenses can I deduct?

The Travel Expense

The cost of the travel by airplane, train, bus, or car between the taxpayer’s home and business destination is tax-deductible.

Transportation Cost

The cost of the travel expense is tax-deductible when a taxpayer uses their own car at a business travel destination.
There are two ways to calculate this travel expense:

1. The actual expenses method, and
   
2. The standard mileage rate method.
   
   For more information on these methods can be found in the Falcon Expenses resources post, How to Maximize Business Use Car Tax Deductions. Also, business-related tolls and parking fees are tax deducted. For rented cars, only the business-use portion of the expenses is a travel expense write-off.

Meals and Lodging

Service Tips

Service tips paid for services related to any business travel expense.

Dry Cleaning and Laundry

Business Communications

For example, while on a trip the cost of telephone calls, internet, email, faxes, etc. are tac deductions.

Other Expenses Related to Business Travel

For example, transportation to and from a business meal, computer rental fees, etc.

Some companies give their employees a traveling allowance. A traveling allowance, also known as a per diem, is used for meals or other business travel expenses. The advantage of a per diem is that the employee is paid for business travel expenses in advance. Therefore, they don’t have to keep a detailed record of each expense and wait to be reimbursable at a later date.

Baggage, shipping fees between regular and temporary work locations.

For more information on temporary work locations please review the post, Temporary Work Location Commuting Expenses Tax Deductions.

For further details on recordkeeping requirements for the above-mentioned expense types please review the post, IRS Rules for Recording Business Expenses: Travel, Transportation, Meals, and Entertainment.

About Falcon Expenses

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On average, Falcon customers record $6,600, in annual tax deductions. Get started today.

The longer you wait, the more tax deductions you miss.

Automatically track mileage expenses and expenses, keep an odometer log, receipt vault and log billable hours. Quickly organize expenses by time period, project, or client. Easily create expense reports and mileage logs with your expense data to email to anyone in PDF or spreadsheet formats, all from your phone. Falcon’s expense report template is IRS compliant. Use for keeping track of tax deductions, mileage logs, time logs, reimbursements, taxes, record keeping, and more. Falcon Expenses is great for self-employed, freelancers, realtors, delivery drivers, couriers, business travelers, truckers, and more.