A Guide to Business
Travel Deductions
With the proper documentation, all business-related travel expenses are tax-deductible, right? Not always.
All general costs incurred on a business trip, such as airfare, most meals, lodging and public transportation, are deductible to the extent allowable by law. Telephone calls, faxes, hotel Internet charges and computer and equipment rental are also deductible. But did you know that haircuts, manicures and dry cleaning expenses that directly relate to your business trip can also be deducted from the year-end tax bill?
Personal entertainment, extravagant meals and lavish accommodations are never deductible. If a spouse or family member joins you on a trip, you won't be able to deduct any of his or her expenses, unless he or she is a legitimate employee and traveling for business purposes.
When the trip combines professional and personal pursuits, the rules become cloudier. If expenses are directly related to business, they are generally fully deductible. The deductibility of other expenses, such as airline tickets and hotel stays, depends on the trip's primary purpose: business or pleasure. When in doubt, contact your tax advisor.
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