Can I Deduct Business Travel?

By Anna Duncan

When it comes to running a business, deductions can help save you money and keep your business afloat. One of the deductions you may be able to use is business travel. Deducting business travel can be a great way to lower your taxable income and keep more of your money in the bank.

In order to deduct business travel, you must meet certain criteria. First, the trip must be for a legitimate business purpose.

This means that it must be related to your job or profession such as attending conferences, visiting clients, or conducting research for a project. Vacations and personal trips do not count as deductible business travel expenses.

Once you’ve determined that the trip is for a legitimate business purpose, you need to calculate the amount of money spent on the trip that can be deducted. Generally speaking, you can deduct any expenses related directly to the trip such as airfare, hotel stays, meals, car rentals, and other transportation costs. You can also deduct other costs associated with your trip such as internet access fees, telephone calls made for business purposes, any tips given for services rendered during the trip or other miscellaneous expenses incurred while travelling for work.

When deducting these expenses from your taxes it is important to keep track of all receipts and other evidence of payment so that you have proof of all expenditures should there be an audit by the IRS. Additionally, you will need to fill out Form 2106-EZ in order to properly report these deductions.

Conclusion: Can I Deduct Business Travel? The answer is yes!

In order to do so however you must meet certain criteria such as ensuring the trip is for a legitimate business purpose and keeping track of all receipts and other evidence of payment related to the trip so that they can be reported correctly on Form 2106-EZ when filing taxes. By doing this correctly you can save yourself some money come tax time by taking advantage of this deduction!