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Maximize Your Business Travel Deductions

If you’re a business traveler, it’s in your best interests to understand what the IRS allows as business travel deductions. Be sure to read Developing a Travel Policy if your business has yet to institute policies around business travel.

In order to prorate your business expenses and to claim those the IRS allows, it’s first necessary to differentiate between business and non-business activities. While on a business trip, if you engage in non-business-related activities, the IRS does not require you to prorate transportation costs incurred to and from your main destination. However, this does not include any extra, non-business-related days spent at the destination.

Business trips made to tradeshows and conferences may be listed as deductions; however, they must benefit your business, and the convention, conference, or seminar must last a minimum of six hours daily. You’re also required to attend a minimum of two-thirds of the program. Keep copies of your registration forms and the receipt in order to document your attendance and to confirm payment.

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