Business Deductions
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- Meal and Entertainment Expenses
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- Qualified Plan Awards
- Schedule C Expenses
- Section 197 Intangibles
- Should You Sell or Trade in Your Car?
- Start-up Costs
- Travel Expenses
More Tax Topics
- Business Structures
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- Top Tax Myths
- Per Diem Rates - IRS Publication 1542 Oct 2011 for Travel Within the Continental U.S (for employers who pay a per diem allowance to employees)
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Need Some Deductions for 2011?
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Updated for 2011
Travel Expenses
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Business-Vacation Trips Inside the U.S.
Deducting expenses while at a resort or some other vacation spot within the 50 states and the District of Columbia, even though you may enjoy some nonbusiness activities, is allowed, providing:
- The primary reason for the trip is to transact business.
- The most important element for determining your primary purpose is the amount of time spent on business.
Even if you spend time vacationing, as long as the primary purpose of your trip is business (most of your time is spent on business) you may deduct:
- All your transportation costs to and from the area (100% deductible).
- Lodging (100% deductible).
- Meal expenses (50% deductible).
Extending your stay:
If you extend your stay for non-business purposes, say to visit friends, travel expenses are only deductible to and from the business location.
Primary purpose personal:
If the primary purpose of your trip is for personal reasons you may not deduct any travel costs to and from the area.
Business-related expenses still deductible:
Even if the primary purpose of your trip is for personal reasons, you may still deduct business-related expenses.
Since the amount of time is important for determining the primary purpose of your trip you should keep a record of time spent (e.g., a log or diary) on business activities. This will provide evidence, in case you're audited, that your trip was planned primarily for business reasons.
Next:
Travel Expenses: Business-Vacation Trips Outside the U.S.
Related Links
- Domestic Per Diem Rates
- What Are Travel Expenses?
- Who May Deduct Travel Expenses?
- Items Included in Travel Expenses
- Tax Terms You Need to Know-Ordinary and Necessary Expenses
- Tax Terms You Need to Know-Tax Home Defined
- Tax Terms You Need to Know-Tax Home Example
- Tax Terms You Need to Know-Transient and Away From Home Test
- Personal Expenses
- Expenses of a Spouse, Dependent, or Other Individual
- Entertainment Expenses of Non-Employees
- Entertainment Expenses of Non-Employees-Example
- Employee Travel Expenses
- Employer Error Reporting Travel Expense Reimbursement on Form W-2
- Employee Accountable Plan
- Commuting Costs
- When You May Deduct Commuting Costs
- Temporary Work Locations and Commuting Expenses
- Temporary Work Location-Example
- What if Your Expectations for the Length of Time to Work Changes?
- Professionals Traveling to Clients' Sites
- Business Conventions and Seminars
- Investment Conventions
- Video Tapes Received at a Business Discussion
- IRS Meal Allowance
- If Employer is a Relative
- Daily Meal Allowance Amount
- Travel Expense Records You Must Keep
- Transportation Industry Workers
- Claiming the IRS Meal Allowance
- Travel By Cruise Ship
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