Travel Expenses
Candlefocus EditorExpenses such as airfare, lodging, transport services, cost of meals and tips, and the use of communication devices are all commonly associated with business-related travel. However, the IRS will not allow deductions for any expenses deemed "unreasonable, lavish, or extravagant". The IRS also does not allow deductions for travel expenses incurred while on indefinite work assignments lasting longer than one year.
When a business employee is required to travel away from their home, keeping detailed records of every expense is essential in order to make sure the expenses qualify for deduction. Receipts of all expenses related to travel should be kept and submitted with the annual tax return. Tracking and keeping accurate records of travel expenses can help ensure the maximum deductibility allowed.
Travel expenses can be a major cost for businesses, so it is important to understand what expenses can be deducted and what expenses are not covered by the IRS. Knowing and following the IRS guidelines for deductions can cut down on costs and help businesses get the most out of their expenditure.