Business Travel – What Can You Deduct?

Travel for business can be a tricky thing to navigate.  Some go on a trip that is only for business, but many, especially business owners, may tack on some personal time to either end of a business trip.  In the end, what can you deduct? The following are some general rules to keep in mind.

  • Within the U.S. all your costs to get to your destination are deductible if the primary purpose of the trip is for business.  Usually, this means you spend more than half your time conducting business.  If the trip isn’t more than 50% for business, you can’t deduct any of the travel costs, and travel costs for family not conducting business aren’t ever deductible.
  • Costs on your days spent conducting business are deductible, with meals and entertainment limited to 50%, and all other costs such as hotels and cabs allowed at 100%.  Again, these expenses need to relate directly to business.

Remember, the key here is that there needs to be a business purpose for the trip.  Taking a vacation and spending a few hours out of a week discussing business won’t completely convert an otherwise personal vacation to a totally deductible business expense.  As always, we’re here to help!