Business travel can be tricky when it comes to tax deductions. Plenty of questions come to mind—When is it considered a business day or a personal day? What types of travel and expenses are deductible?
It can be somewhat overwhelming at first. Luckily, we’ve got a few key details to help you keep track of things! Here are three things to keep in mind regarding business travel tax deductions:
1) If you travel for business that requires an overnight stay, your entire airfare is deducted no matter what the ratio is of personal days to business days. For example, if you’re from Minnesota and you take a 5-day trip to Florida and only two of them are business days, the entire airfare is still deductible.
2) Food (three meals, drinks, and snacks), hotels or other lodging accommodations, and transportation (Taxis, Lyfts, etc.) are all deductible.
3) Travel outside of the United States counts for business days as long as you take the most direct route possible and don’t take “substantial diversions for non-business reasons”.
If you decide to take the scenic route (metaphorically or literally), you need to count the most direct route as your total business time. Basically, diversions from business, in general, shouldn’t be counted when deducting your business days.
These three tips are a good start, but there’s a lot more to know. Got questions about your business travel deductions or want to discuss your tax options in general? Contact us today!
Integrated Accounting & Tax, LLC is a woman-owned accounting firm with services tailored to each client’s unique needs and goals. We guarantee that every service we provide is essential and propels your goal.
Contact us today for a free tax services consultation. We have locations in Prior Lake, MN, and Ft. Lauderdale, FL, and can provide service to surrounding areas.