Hey ,
Are you planning to travel for business this summer? If so, you may be able to deduct some of your travel expenses on your taxes. Here are some tips on how to
write off business travel the right way.
What counts as business travel?
According to the IRS, business travel is any trip that is:
- Mostly business: You spend more days doing business activities than not. Your travel days count as work days.
- Ordinary and necessary:
The trip makes sense for your industry and is taken for a business purpose.
- Away from your tax home: Your tax home is your main place of business, not necessarily where you live with your family.
What expenses can you write off?
You can deduct all the ordinary and necessary expenses you incur while traveling for business, such
as:
- Transportation: Airfare, train tickets, car rentals, taxis, etc.
- Lodging: Hotels, Airbnb, etc.
- Meals:
50% of the cost of food and beverages while traveling or meeting with clients.
- Event registration: Fees for attending conferences, seminars, workshops, etc.
- Equipment rentals: Computers, projectors, printers, etc.
- Miscellaneous: Baggage fees, laundry, tolls, parking, etc.
How to claim your deductions?
To claim your travel expenses, you need to keep track of all your receipts and document the business purpose of each expense. You also need to file the right forms with your tax return.
- If you are self-employed, you can deduct your travel expenses on Schedule C (Form 1040) or Schedule F (Form 1040) if you are a farmer.
- If you are an employee, you can deduct your travel expenses on Form 2106 and report them on Form 1040 or Form 1040-SR as an adjustment to your income.
Do you need help or the "logs" to track your travel expenses? Call my office at 202-618-1297 or book a consultation with me; link below.
