Services

Transportation/Travel Expenses

Transportation/Travel Expenses

  1. Transportation to business destination expenses
  2. Business Day expenses

IRS Reg 1.162-2(b)(1) https://www.irs.gov/pub/irs-drop/rr-99-7.pdf –  Traveling expenses include travel fares, meals and lodging, and expenses incident to travel such as expenses for sample rooms, telephone and telegraph, public stenographers, etc. Only such traveling expenses as are reasonable and necessary in the conduct of the taxpayer’s business and directly attributable to it may be deducted.

To claim this deduction: Fees for us to prepare: $50 per travel

  • we will keep your records for 3 years
  • Keep receipt that shows amount of travel.
  • Keep time and place of travel.
  • Keep business purpose of travel.
  • Include receipts you obtained (as long as we receive the following within 1 week of travel)
  • meals and lodging
  • fares and costs of transporting luggage, display materials
  • Cleaning and laundry (must get dirty during travel status)
  • Telephone
  • Cost between airport/hotel
  • Tips incidental to above
  1. Car stategy: Must drive 300 miles; must spend more time for business for business than personal. More than 51% are business days. Example. You spend 5 days for business and 4 days for sightseeing.
  • 302-4.201 How are my authorized en route travel days and per diem determined for relocation travel?

Your authorized en route travel days and per diem are determined as follows: The number of authorized travel days is the actual number of days used to complete the trip, but not to exceed an amount based on a minimum driving distance per day determined to be reasonable by your agency. The minimum driving distance shall be not less than an average of 300 miles per calendar day. An exception to the daily minimum driving distance may be made when delay is beyond control of the employee, such as when it results from acts of God or restrictions by Government officials; when the employee is physically handicapped; or for other reasons acceptable to the agency.

  1. Cruise ship: can only deduct luxury water travel limits per day.

IRS publication 1542: https://www.irs.gov/pub/irs-pdf/p1542.pdf

  1. Foreign travel:
  2. Less than 7 days: may deduct 100% if trip involves 1 business day

IRS section: 274.c such travel does not exceed one week, or the portion of the time of travel outside the United States away from home which is not attributable to the pursuit of the taxpayer’s trade or business or an activity described in section 212 is less than 25 percent of the total time on such travel.

  1. More than 7 days: more than 75% are business days.

IRS section: 274.c such travel does not exceed one week, or the portion of the time of travel outside the United States away from home which is not attributable to the pursuit of the taxpayer’s trade or business or an activity described in section 212 is less than 25 percent of the total time on such travel.

Reasons for Travel:

  1. Start a new business
  2. Get educated out of town
  3. Convention: maximum 2,000 for US cruise ship