Tax Saving Tips on Domestic Business Trips
Posted by Kim Perkins on October 27th, 2011
If you go on a business trip within the United States you know that you can deduct some of your expenses. The question is how much. First, let’s cover just the transportation expenses. This is the cost of travel to and from your business destination. It includes travel to your departure airport, airfare, baggage fees, tips, cab fare, etc. All costs for travel fit into this category. The bottom line is this: all of your domestic transportation costs are 100% deductible if your primary purpose is business! But beware, if your primary purpose is pleasure, i.e. a vacation, then none of your travel expenses are deductible; after all, you’re going on vacation.
The IRS does not specify how to determine if the primary reason for domestic travel is business, but let’s be logical: you should be able to claim business as your primary purpose whenever business days exceed any personal days. Any expenses incurred over a weekend or a holiday are also deductible if they fall between days designated for business and it is unreasonable or impractical for you to return home.
Once at your business destination, your out-of-pocket expenses are fully deductible with the exception of meals, which are subject to a 50% disallowance rule. Out- of-pocket expenses include lodging, tips, transportation (cabs, buses, car rental), seminar and convention fees.
Be sure that you document and accumulate proof that you did attend to business while on your business trip. This only serves to protect your interests (money) should the IRS question your expenses. Log your meetings in your day planner, collect your CEU’s from your seminars, keep your notes and programs from your convention.
By the way, expenses for personal days while on a business trip are not deductible!
Remember, your success is our business, and…
We want to be… At The Core!
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