Business Travel – What You Can & Can’t Write Off

If you’re a small business owner you know that travelling a few times of the year (or even as often as multiple times a month) is a necessity. Knowing that you can deduct many of your expenses on your taxes when travelling is comforting, however it’s best to know what you can and can’t write off. It’s best to know which things you can and can’t write off before time so that it saves you a lot of headache come tax time. Here’s a simple guide to identifying these deductions.

A few of the obvious expenses that are tax deductible include transportation and meals. Keep in mind that as long as you’re conducting business outside of the town that you live in these following business expenses generally quality as tax deductible. No matter how you travel, whether it’s by train, bus, plane, or car you can deduct that expense! Tolls and parking fees count as well. Keep in mind that for every mile you drive for business you can deduct a certain amount. Taxi rides count as well so be sure to keep a receipt! Dining expenses, within reason can be deducted as well. Before you decide to go off to that high price buffet, keep in mind that only half of what you spend typically qualifies for a write-off.

Another business expense that can be written-off on your taxes is lodging! Be sure to ask for an itemized bill when you check out because some of your hotel expenses might not be eligible. A great way to save money on your business trip is to visit beforehand. This allows you to get the best deal possible. Any expenses that you pay for that are necessary for the business trip including conference fees and equipment rental all quality for tax deduction. It’s best to keep detailed records of all the expenses.

Here are a few expenses that do not qualify for tax deduction; family travel costs, expenses in your home city, and unreasonable expenses. Unreasonable expenses may seem a bit vague but the rule of thumb is: if you feel like an expense might not be absolutely necessary for you to conduct business, don’t claim it. Better safe than sorry!