The Basics on Business Travel Expenses Deductions
Audio version available here:
Length: approx. 1 min. 20 sec.
Welcome to the XQ CPA Tax Day Checklist, a series sharing tax tips every day leading up to the April 15th tax filing deadline. Today we will be discussing business travel expenses and how they can be deducted from your taxable income.
If you have taken a trip for your business, you can deduct ordinary and necessary expenses from the trip on your tax return, provided they are not lavish and extravagant under IRS standards. The cost of the bus or airplane ticket to and from your home and destination, as well as your luggage and hotel boarding costs, can be deducted. This includes trips between airports, hotels, and business locations for the duration of your trip. Meals during the trip may also be deducted, but typically not at 100%. Check out yesterday’s post for more details. Tips given for services on the trip count as well, so be sure to keep an accurate log of all expenses incurred during your business trip.
Keep in mind that the amount you can deduct will depend on the type of expense as well as the percentage of the trip you spend doing business activities.
Want more tax tips? XQ CPA has all the latest and greatest tax tips and business news for 2023 tax filing. Be sure to go back and check out this week’s and last week’s tax tips and stay tuned for more soon!
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