Many people travel for their job – some for an occasional conference and some travel year-round. Whatever their time on the road, business travelers should know how and when to deduct business travel expenses.
What to know about tax deductions for business travel Business travel deductions are available for certain people who travel away from their home or main place of work for business reasons. A taxpayer is traveling away from home if they are away for longer than an ordinary day’s work and they need to sleep in a location other than their home to meet the demands of their work while away.
Travel expenses must be ordinary and necessary. They can’t be lavish, extravagant or for personal purposes. Employers can deduct travel expenses paid or incurred during a temporary work assignment if the assignment is less than one year.
Travel expenses for conventions are deductible if attending them benefits the business. There are special rules for conventions held outside of North America.
Deductible travel expenses include:
• Travel by plane, train, bus or car between home and a business destination
• Fares for taxis or other types of transportation between an airport or train station and a hotel, or from a hotel to a work location
• Shipping of baggage and sample or display material between regular and temporary work locations
• Using a personally owned car for business
• Lodging and meals
• Dry cleaning and laundry
• Business calls and communication
• Tips paid for services related to any of these expenses
• Other similar ordinary and necessary expenses related to the business travel
