Short List
Deductible travel expenses while away from home include, but are not limited to, the costs of:
9. Travel by airplane, train, bus or car between your home and your business destination. (If you are provided with a ticket or are riding free as a result of a frequent traveler or similar program, your cost is zero.)
10. Using your car while at your business destination,
11. Fares for taxis or other types of transportation between the airport or train station and your hotel, the hotel and the work location and from one customer to another or from one place of business to another.
12. Meals and lodging.
13. Tips you pay for services related to any of these expenses.
14. Dry cleaning and laundry.
15. Business calls while on your business trip. (This includes business communications by fax machine or other communication devices.)
16. Other similar ordinary and necessary expenses related to your business travel. (These expenses might include transportation to and from a business meal, public stenographer’s fees, computer rental fees, and operating and maintaining a house trailer.)
Instead of keeping records of your meal expenses and deducting the actual cost, you can generally use a standard meal allowance, which varies depending on where you travel. The deduction for business meals is generally limited to 50 percent of the unreimbursed cost.
Employees
If you are an employee, your allowable travel expenses are figured on Form 2106 or Form 2106-EZ. Your allowable unreimbursed expenses are carried from Form 2106 or Form 2106-EZ to Form l040 Schedule A, and are subject to a limit based on 2 percent of adjusted gross income. Refer to Topic 508 for information on the 2 percent limit. If you do not itemize your deductions, you cannot deduct these expenses. If you are self-employed, travel expenses are deductible on Form 1040, Schedule C, Form 1040, Schedule C-EZ or, if you are a farmer, Form 1040, Schedule F.
Good records are essential. Refer to Topic 305 for information on record keeping. For more information on these and other travel expenses, refer to Publication 463, Travel, Entertainment, Gift and Car Expenses.
Noel M. Carroll, founder of The Carroll Group, a consultant for high-end Luxury Hotels, Resorts, and Destinations (TCG-The Carroll Group) and vice president, Global Accounts for HPN Global an international site selection and meeting procurement for corporations and associations worldwide. Email Noel info@tcghotels.com.
