The Ultimate Business Travel Expense Checklist for Entrepreneurs

Summer is coming and some destination ideas come to mind. You know what to get on your suitcase but do you know what expenses could be considered business expenses and consequently be included on your tax files? Let’s dive in and learn how to travel.

Business or vacation trip?

If the primarily objective of your travel is for business, but then decide to spend a couple of days more just for fun. Only the business-related expenses could be filed.

For tax purposes, the required expenses involved in traveling such as food, transport and accommodation away from home and due to profession or job reasons can be included in a tax return. To be considered a journey away from your main worksite we have to define the tax home. Tax home is the usual place of business where most of your professional activities are done. It includes the entire city or general area around your business location.

LISTING OF EXPENSES

These are the main expenses deductible when you travel away from home for business purposes. 

• Transportation: includes air, rail, bus, taxi or uber, etc. The cost of driving and maintenance of personal vehicles also fits here. It’s only deductible the expense between job locations, not the drive home

• Shipping: comprise suitcase and professional equipment required for the job

• • Meals and tips: It only gets deducted half of the cost of meals. Could be calculated on 50% of the cost of meals or standard meal allowance. Doesn’t apply on extravagant meals

• Telephone: business calls while on your business trip. On telephone and data plans only the portion used for business is covered. (If your job and personal cellphone is the same)
• Others: might include going to a business meal, computer rental fees, and operating a house trailer, etc. 

* Check out the full list on publication 463 (IRS)

HOW TO PROVE EXPENSES?

Follow these key steps to add those travel expenses to your tax report:

• Keep tickets, invoices and a written record to prove expenses
• Prove it is business related through a written statement
• Save the records for next quarter or corresponding filling season

These summer have great travel and safe return! safe all those tickets for you or your accountant. Don’t have one? Send us an email in order to work together your finances