A Guide on Writing Off Business Travel Expenses

A Guide on Writing Off Business Travel Expenses

It’s no secret that we love to travel and go to different places. This helps us ease tensions, relax, and feel the ambiance of the destination we chose to go. Even companies also conduct these kinds of recreational activities for employees. it’s a way for them not only to unwind, but also to learn tips and tricks on managing their business. There are also times that employees are bringing their spouse or anybody they know to the trip, resulting with the IRS determining if these travels should be categorized as personal or business expenses when it comes to processing of tax returns. This article will discuss on why is it so important for these kinds of expenses to be categorized, and the items deductible in those categories.


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Expenses to be Determined


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Personal expenses are things that you cannot meddle with when it comes to deductibles in your tax return. If you have a trip in which both personal and business expenses are present, then you have to systematically write them off for you to identify the categories during your travel.

Always remember that any travel which does not affect your business operations should be considered as personalexpenses. The IRS also posted a publishing in their website named Publication 463, which contains deduction rules for travel, and serves as a guide for firms and business owners to know how items can be categorized and deducted in tax returns.

Here is a list of items that can be deducted based on category or situation:

  • Telephone Expense
  • Transportation Expense
  • Laundry Expenses
  • Air Fares and Baggage Charges
  • Cost of Meals
  • Hotel Expenses
  • Gas, Oil and Car Maintenance, as well as Parking Fees

What Exactly is Publication 463?

The IRS Publication 463 focuses on the rules associated with deductions on travel, gift and entertainment.

Now, when it comes to travel, the rule states that you cannot deduct travel expenses to your spouse since it’s considered as personal expense, unless these considerations are followed:

  • Your spouse should be an employee in your business.
  • The purpose of travel should be purely for business reasons
  • The expenses should be deductible by the spouse.

As per business associates, it also follows the same scope of considerations before you are allowed to deduct his/her expenses. Business associates can be classified as customers, clients, employee, partner, etc.

Travel with Flying Colours

One of the best ways for you to include trips in your tax return is to write them off as business deductions. Attending workshops that will enhance your talents on marketing and other stuff that are business related is a good one. You can also consider attending seminars and conferences so that you can gain knowledge in other business perspectives.

You could write them off as business meetings that you attended with clients or even corporate meetings with your employees and business cohorts where you discuss intimate details about your company such as productivity rating and revenue status.

Having your business trips planned is the best starting move for you to manage expenses without any complications. As long as you’re familiar with the rules given by the IRS and you know how to write off business expenses in your trips, you’ll be assured that your travel expenses are safe from tax return issues.