Business travel can get expensive, but the good news is that many of these costs are deductible—if you know the rules. Whether you’re attending a conference, meeting with clients, or scouting new opportunities, these tax tips will help you maximize deductions while staying compliant with IRS guidelines.
Ever wish you could write off those stylish conference outfits? Unfortunately, the IRS doesn’t agree. According to IRS Publication 529, any clothing you purchase for business events that can also be worn outside of work functions is not deductible. So, while that blazer may be perfect for networking, it’s coming out of your own pocket.
Good news: Travel-related expenses, such as flights and luggage fees, are fully deductible. Whether you’re jetting off to a conference or meeting with clients, these costs can be expensed through your business. If you’re driving to your event, don’t forget to check out the tax benefits of car and truck expenses, such as mileage deductions.
Need to get from the airport to your hotel? The cost of taxis, Ubers, or Lyfts is deductible. If you’re sharing a ride with another attendee, split the fare through the app to simplify expense tracking—each person gets their own receipt for easy record-keeping.
When traveling away from your "tax home" (the city or area where your main place of business is located), you can deduct meals eaten while away. This isn’t limited to business lunches; any meal is fair game. Keep in mind, however, that due to the Tax Cuts and Jobs Act of 2017, most business meals are now 50% deductible, and entertainment expenses are no longer deductible. Plan your travel budget accordingly.
Any tips you pay for meals, lodging, or travel services are deductible. If you pay in cash, make sure to log the date, amount, and reason (e.g., "tip for server at dinner") for accurate record-keeping.
Traveling for an extended period and need to do laundry? The cost of dry cleaning or laundry services while away is deductible. This can be a lifesaver for those attending multi-day conferences or back-to-back meetings.
Keeping track of your expenses is crucial for maximizing your deductions. Save all receipts or snap pictures of them and upload them to a secure cloud folder or bookkeeping software. Apps like QuickBooks, FreshBooks, Xero, and Wave make it easy to attach receipt images to your expense records. For those who prefer a low-tech approach, a zippered pouch or wallet can be handy for storing paper receipts while on the go.
Understanding what is and isn’t deductible can save your business money and keep you compliant with IRS rules. From flights and ride-sharing services to meals and laundry, these travel tax hacks will help you deduct like a pro. Remember, proper record-keeping is key—organize your receipts and expenses so you’re prepared when tax season rolls around.
Need help navigating business travel deductions or managing your tax strategy? Capri Tax & Accounting is here to assist! Contact us today for personalized advice and professional support tailored to your unique business needs. Let us help you keep more of your hard-earned money and stay stress-free during tax season. Schedule a consultation now and see the difference expert guidance can make!