Checkmark iconCan I Write This Off?

Can I write off business travel expenses?

TL;DR

Yes, business travel expenses can be deductible if they are ordinary and necessary for your business.

Detailed Answer

Business travel expenses are deductible when they are incurred while traveling away from your tax home for business purposes. Deductible expenses include transportation, lodging, meals (subject to a 50% limit), and other necessary costs. However, the travel must be primarily for business, and personal expenses incurred during the trip are not deductible. For example, if you attend a conference related to your business, the costs of travel, lodging, and meals during the conference are deductible, but any personal sightseeing trips are not.

Where to Put It on the Tax Form

Schedule C (Form 1040), Part II, Line 24a for sole proprietors; Form 1120, Line 26 for corporations.

Real World Example

A freelance graphic designer travels from New York to Los Angeles to meet with a client. The costs of airfare, hotel, and meals during the business meetings are deductible as business travel expenses.

Calculation Required

A calculation is required for this deduction.

Calculate the total of all qualifying travel expenses, including transportation, lodging, and meals (subject to the 50% limit on meals). Ensure personal expenses are excluded.

Audit Risk & Documentation Tips

Maintain detailed records, including receipts, itineraries, and a log of business activities conducted during the trip. Keep documentation for at least three years. Be prepared to justify the business purpose of the trip if audited.

IRS Reference

IRS Publication 463, Travel, Gift, and Car Expenses

Relevant Industries

FreelancersSmall BusinessConsultantsSales Professionals

Popular Related Pages

Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.

Page created on July 7, 2025

Back to Search