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Your Guide to Taking a Business Travel Expense Deduction on Taxes

Did you know business travel’s expected to increase this year? Traveling for business is rewarding, but you need to remain organized with expenses. If you want to learn about write-offs for businesses, we can help.

In this guide, we’ll go over the business travel expense deduction you might incur during a trip. You’ll learn about what you can and cannot write off.

Want to learn more? Keep reading.

Why Track Tax Deductions?

A write-off is something you can deduct from your taxable income. The fee must fit the IRS criteria of a tax deduction.

You get to remove the amount of the expense and subtract it from your taxable income. This way, you end up paying a smaller bill.

You can write off some travel expenses if they’re directly related to business.

Track Your Transportation

Keep receipts for bus, train, airplane, or taxi fares between the business and home. Fares for any transportation need receipts.

You should always ask for receipts when you take a taxi to the work location of your clients.

What About Shipping and Luggage?

Are you presenting a workshop at a trade show? If you need to ship your display materials, you can write this off as well.

Do you plan to check in your luggage for your flight? You will be able to deduct that cost.

If you prefer to avoid the headache of checked-in baggage, bring something smaller. Some people get carry-on or even small bookbags like these products here.

Where Will You Stay?

Look at deducting your business-related hotel stays. The lodging fare is a reasonable expense as long as it’s necessary for your business trip. For example, you might need to stay at a particular hotel for a travel conference.

Will you bring your friend? You can only deduct the lodging expense for yourself.

Can You Deduct Laundry or Dry Cleaning Costs?

Most businesses give you a write-off for your dry cleaning or laundry bills during the business trip. 

Stay organized, so you don’t lose out on tax deductions. This is an itemized deduction, so you need to itemize this expense. 

Don’t Forget Meals

Meals and write-offs are a little complicated. Most of the time, you can deduct half of the meal cost. Yet, meals must be non-entertainment related.

Entertainment expenses are no longer deductible. If you attend a dinner theater show with your client and the meal isn’t on your ticket, you can’t deduct it.

You should track and deduct your meal expenses. Keep all your receipts.

Use This Business Travel Expense Deduction Guide

We hope this guide on business travel expense deduction was helpful. You should keep track of your write-offs for businesses. Don’t miss out on any tax deductions.

Are you looking for more helpful travel articles like this one? Stick around and browse our other content.

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