Small Business Write Offs: Travel Expenses

Small business write offs can help reduce your expenses so you need to know what are the types of expenses that you can deduct from your taxable income. Travel expenses are some of the costs that you can deduct from your taxable income so whenever you go on a business trip, you should keep a record of all your expenses. According to the Internal Revenue Services (IRS), travel write offs apply to business travels such as meeting with clients, business conventions, travel treats to clients and the likes. However, not all expenses that you incur while traveling can be written off. Below are some of the travel expenses that you can claim as tax deductions.

Transportation

Airfare, bus or train tickets and gas are travel-related expenses that may be deducted from your taxable income. However, in order for you to claim these deductions, you need to produce the necessary documentations such as receipts and used tickets. Without the necessary documents, you cannot claim these expenses as tax deductible. The travel expenses of your companion can be classified as deductible travel expenses only if your travel companion is your employee or a family member who is working for you or they are professionally involved in the business.

The IRS is very strict when it comes to the expenses of your travel companion so you should not take things for granted. If you cannot establish that your family member or friend is professionally involved in the business and is accompanying you in their capacity as a business associate or employees, you should not attempt to include their travel expenses in your deductibles.

Lodging and Dry Cleaning

The cost of your lodging or accommodations and dry cleaning services during the business trip is tax deductible. As it is, you should always ask for a receipt of all your business travel accommodations. Receipts from dry cleaning services must bear the address of the city or town when you are traveling so if you have your clothes dry cleaned before leaving home or after arriving from your trip, you may not be able to use such receipts to claim for travel tax deductions.

Meals and Entertainment

Based on the IRS rules, you can deduct 50 percent of the meals and entertainment expenses that you incur during your trip. This means that if you treat your clients to dinner and a show in Las Vegas after your business meeting, you can deduct 50 percent of the cost from your taxable income. Now, you should be very careful when it comes to claiming tax deductions on meals and entertainment as these items are some of the most watched items in tax returns. As a general rule, you can only claim 50 percent on meals and entertainment expenses for yourself and for your client or business associate. If you have a friend or a family member with you, you may not include their expenses in your deductibles. In the same way, if your client or business associate brought along someone who is not associated with his or her business, you may not deduct the expenses incurred by that person in your returns.

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