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Is can you deduct travel expenses for work a business expense?

TL;DR

Travel expenses for work are generally deductible as a business expense if they are ordinary, necessary, and directly related to your business activities. However, personal travel costs are not deductible, and strict documentation is required to substantiate the business purpose.

Detailed Answer

Travel expenses can be deducted when they are incurred while traveling away from your tax home for business purposes. This includes costs like airfare, lodging, meals (subject to a 50% limit), and other necessary expenses. The travel must be primarily for business, and any personal portion of the trip is not deductible. For example, if you attend a conference in another city, the travel and lodging expenses are deductible. However, if you extend your stay for a vacation, those additional costs are not deductible. The IRS requires that the trip be longer than an ordinary workday and that you need to sleep or rest to meet the demands of your work while away.

Where to Put It on the Tax Form

Schedule C, Line 24a for business travel expenses. If using Form 2106 for employee business expenses, report on Line 4.

Real World Example

A freelance graphic designer travels from New York to Los Angeles to meet with a client. She spends $500 on airfare, $300 on lodging, and $150 on meals. She can deduct $500 for airfare, $300 for lodging, and $75 for meals (50% of $150) as business expenses on her Schedule C.

Audit Risk & Documentation Tips

The audit risk for travel expenses is moderate. Taxpayers should keep detailed records, including receipts, itineraries, and a log of the business purpose for each trip. It's important to document who you met with, the business purpose, and the dates of travel. Keep copies of contracts or emails that support the necessity of the trip.

IRS Reference

IRS Publication 463

Relevant Industries

FreelancersConsultantsReal Estate AgentsSales ProfessionalsEvent Planners

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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 25, 2025

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