Is your summer travel Deductible?
July 21, 2022
Business travel can be costly. The good news is many of your regular travel expenses are deductible on your taxes to help off-set these costs. A trip typically qualifies as business travel when you must be away from your home or main place of work for business reasons overnight or longer.
Travel expenses to be claimed on your taxes must be ordinary and necessary. Lavish, extravagant, or personal entertainment items will not qualify.
Some of the most common deductible travel expenses include:
Travel by airplane, train, bus or car between your home and your business destination.
Fares for taxis or other types of transportation between an airport or train station to a hotel, from a hotel to a work location.
Shipping of baggage and sample or display material between regular and temporary work locations.
Using a personally owned car for business which can include an increase in mileage rates (see more below).
Lodging and non-entertainment-related meals (see more below).
Dry cleaning and laundry.
Business calls and communication.
Tips paid for services related to any of these expenses.
Increase Mileage Rate:
The IRS recently announced an increase in the standard mileage rate for the final six months of 2022. Starting July 1, 2022, taxpayers may use the optional standard mileage rate of 62.5 cents per mile to calculate the cost of using their personal vehicle for business purposes.
temporary Full Deduction of Business Meals:
Through January 1, 2023, business meals provided by a restaurant are 100% deductible. All other food and beverage expenses are still subject to the 50% deduction limitation unless some other exceptions apply.
Read our previous newsletter offering additional information and guidance on this topic here.