Business Travel Tax Deductions

Tax Deductible Business Travel Expenses

It’s imperative that you plan business trips in an effort to gain the maximum deduction. The same as other costs of doing business, it’s possible to claim income tax deductions for any business travel expenditures which you personally incur in doing business with your customers.

You are allowed to only deduct for your travel costs if they are ordinary in nature and required in providing services to the clients. Travel expenses you may deem lavish or extravagant, won’t qualify for a deduction. Although not an absolute guarantee, these below types of travel expenses are usually tax deductible:

Fuel and other automotive costs you pay while working at the client’s location. Transportation costs incurred while travelling from your personal home to the client site. Dry cleaning and laundry expenses occurred during business travel. Meals and hotel costs.

The everyday commute between home and the office is in the eyes of the IRS a personal expense.

Qualifying travel expenses demand that you travel more than just a few miles from your main workplace to provide service to a customer. This will typically mean you must go beyond the city in which you work or, for small towns, you will have to leave the general surrounding area. In general, travel expenses are eligible if you have travelled far on long enough that requires you must stay at a hotel.

It is permissible to deduct for travel costs incurred while doing your job away from your tax home. However, if you provide services at a client location for an indefinite amount of time or for over a year, you cannot claim the tax deduction.Maintaining detailed records is key. Establish this practice to ensure easier tax prep, and support all deductions you claim on your return.

Contact your tax accountant for any help.

Burien CPAAbout Burien CPA
Burien CPA+John Huddleston has written extensively on tax related subjects of interest to small business owners. He is a graduate of Washington State University and the University of Washington School of Law.

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!

  • Huddleston Tax CPAs / Huddleston Tax CPAs – Burien
    Certified Public Accountants Focused on Small Business
    14900 Interurban Avenue S, Suite 271 / Tukwila, WA 98168

    Huddleston Tax CPAs & accountants provide tax preparation, tax planning, business coaching,
    QuickBooks consulting, bookkeeping, payroll, offer in compromise debt relief, and business valuation services for small business.

    We serve: Tukwila, SeaTac, Renton. We have a few meeting locations. Call to meet John C. Huddleston, J.D., LL.M., CPA, Lance Hulbert, CPA, Grace Lee-Choi, CPA, Jennifer Zhou, CPA, or Jessica Chisholm, CPA. Member WSCPA.