We get a lot of questions about which travel expenses are considered tax deductible business expenses. According to the Internal Revenue Code (IRC), certain expenses associated with travel are tax deductible. Not all travel expenses are tax deductible, but there are more tax deductions available than just the plane ticket.
For example, the cost for buying and maintaining company cars, trucks, or even bicycles may be a tax deductible business expense.
Additionally, long-distance travel for business purposes may be a tax deductible business expense. To deduct expenses for long-distance travel, the entire purpose of the trip does not necessarily have to be for business. However, the deductible portion will likely be proportional to the portion of the trip you spend in meetings, at conferences, or at training, for example.
Some travel expenses you may be able to deduct include the cost of the travel fare and the business-related meals and entertainment.
When claiming business expenses for tax deduction purposes, there are certain “substantiation requirements” you must meet. Those substantiation requirements include documenting and keeping records (like receipts) of:
- The amount of the expense;
- The time and place of the travel, entertainment, recreation, or use of the property;
- The business purpose of the expense; and
- The business relationship of the persons entertained to the taxpayer.
In addition to travel expenses, you may also be able to deduct professional association dues, as well as some insurance policies like professional liability insurance and business coverage on personal liability insurance.
Don’t forget, many attorneys fees are tax deductible!