Travel Smart, Save Big: Tax-Deductible Business Travel Tips
Do you love to travel and want to know how to make your travel tax-deductible?
The beach, the mountains, a new city. These are a few of my favorite things. Going to those places and writing off the expenses of doing so? Another one of my favorite things.
I want to help you as a business owner discover the IRS rules behind tax-deductible business expenses.
This topic can get a bit tricky, but it is worth learning the rules so you aren’t claiming expenses you shouldn’t be or not claiming expenses you should be to maximize your income.
With every episode of Linda Tuttle Adventuring Accountant TV, I like to equip you with a free resource that goes with the episode for the week.
Since in this episode we're talking about tax deductible travel expenses, I want you to know what tax deductions you should be looking for and keeping track of in your business. As a business owner, you should know what these deductions are. So, I want to give you my 9 Fool Proof Ways for Online Business Owners to Be More Profitable Guide.
After going through this guide, you will have a better idea of what tax deductions are available to you as a business owner and how keeping track of these expenses can help you increase your profit.
You can download the FREE resource by clicking the orange button above.
Travel Smart, Save Big: Tax-Deductible Business Travel Tips
First of all, this is one of the benefits of owning your own business. If you are an employee and traveling for work, you will likely get reimbursed for those expenses, but travel you pay for as an employee that is not reimbursed is not deductible for tax years through 2025 thanks to the Tax Cuts and Jobs Act.
If you do own your own business or are a 1099 contractor, this is for you.
Next, think about your “tax home”. This is your “regular” place of business.
Your travel should be more than 100 miles from your Tax Home.
Next, your travel must be an “ordinary and necessary” expense of doing business.
You can find the info I’m talking about in IRS Publication 463.
I’m a big believer in attending events and personal development because they will help you grow and develop skills to improve your business. So attending conferences that are for a business purpose makes the purpose of a trip tax-deductible. Attend a conference that is going to help you grow your business in a different city.
Don’t book a trip for the purpose of lounging at a pool, make a business phone call and answer a few emails and think you can deduct your whole trip. That is not a business trip, that is a personal trip. You should be working regular work hours during your trip for it to be deductible.
However, if you attend a conference for 3 days and you stay an extra day, your primary purpose for the trip is business. This makes your expenses for the business days tax deductible. This means your airfare, hotel, luggage fees, 50% of meals, wifi, car rental if you have one or Uber or other transportation are all deductible.
If you go get a pedicure in the evening during this same trip, being on a business trip does not make that pedicure tax deductible. That is a personal expense.
Let’s discuss another example. This is straight from the IRS Publication. You work in Atlanta and take a business trip to New Orleans in May. Your business travel totals 900 miles round trip. On your way home, you stop in Mobile to visit your parents. You spend $2,165 for the 9 days you are away from home for travel, non-entertainment-related meals, lodging, and other travel Page 6 Chapter 1 Travel expenses. If you hadn’t stopped in Mobile, you would have been gone only 6 days, and your total cost would have been $1,633.50. You can deduct $1,633.50 for your trip, including the cost of round-trip transportation to and from New Orleans. The deduction for your non-entertainment-related meals is subject to the 50% limit on meals mentioned earlier.
In conclusion, there are some rules to understand behind deducting travel, but I am a firm believer in you as a business owner understanding those rules so you know what to document and claim as legitimate business expenses. Remember to keep all of your receipts.
DISCLAIMER: I am a licensed CPA in the State of Utah. I am not a financial advisor. The information provided in this video is for entertainment purposes only. No such communication is provided in the course of a CPA-client relationship, and no communication is intended to constitute legal or tax advice. You should speak with your own tax and legal professionals to discuss your circumstances before performing any of the tax, legal or accounting strategies demonstrated in this video.
Resources Mentioned
Accounting Workshop for Online Business Owners - Learn More Here
Travel Resources - Learn More Here
I love to travel and I have found some items that make it easier and more enjoyable for me.
In Closing...
With some planning, you can travel to some amazing places and have your travel be 100% tax deductible if you follow the rules.
Don't forget to grab the 9 Foolproof Ways for Online Business Owners to Be More Profitable so you can be prepared for tax time next year.
You can download this FREE resource by clicking the yellow button below 
