Travel Expenses
What You May Deduct
You may deduct costs for traveling away from home on business. Since you are away from home, you may also deduct personal costs such as food, lodging, and incidentals. You must also be required to sleep away from home to be able to deduct these costs. The travel must also be "temporary" (lasting less than a year). Costs for transportation (airline tickets, for example) are deductible. If you are driving, you can keep track of actual costs or the standard mileage allowance. The Car/Truck Expense article has more information on this subject.
Where to Show these Expenses
- For sole proprietors and single-member LLCs, show these expenses in the "Expenses" section of Schedule C
- For partnerships and multiple-member LLCs, show these expenses in the "Deductions" section of Form 1065
- For corporations, show these expenses in the "Deductions" section of Form 1120.
Special Notes
- Conventions and Trade Shows
If you travel to a convention or trade show, you may need to show that the convention is directly related to or associated with your business. If you have a sales booth at the convention, that would qualify. If you are a delegate to a convention, the purpose of the convention must relate to your business.
- Cruises Costs of travel on cruise ships, even for direct or associated business purposes, is limited. You may be limited to a total of $2,000 of costs for the cruise, and other limitations may apply. Be prepared to provide documentation that the cruise activities were related to business purposes.
Disclaimer
This article presents general information; I am not a tax attorney or tax preparation specialist. Refer to IRS publications and refer questions to your tax consultant.
