According to the IRS, your tax travel business tax may be difficult to judge, especially if you are running at your own business and you do not want to visit any small questions with your accountant. More complicated, it tries to figure out whether travel costs can be deducted when combined with some leisure activities for a business trip.
This article outlines the basic travel costs that you can deduct as a legitimate business expense. But before diving, I need to give you a definition, and that's a business day.
What do you think of the IRS as a business day?
Any of these is considered as any business day:
– one day when traveling to your business destination and business destination
– one day when you spend at least 4 hours on business activities
– one day when we planned the meeting
The first two are relatively straightforward to understand. Just make sure you have documentation that backs up your journey, such as ticket channels. On days when you spend at least 4 hours in business, your activity log is used as a documentation.
On days when there is a pre-planned meeting, you have to prove that you actually participated in the appointment. How do you prove it? If you met someone for a meal and picked up the card, the certificate from the meal is a proof. Otherwise, people or people must print e-mail before and after the trip. E-mail sent before the trip proves that the meeting was pre-designed. An email sent after a meeting (for example, thank you for your meeting) proves that you were at the meeting.
Tax Reduced Business Travel Costs
Now that we have reached this definition, let's go down to the list of things that can be deducted from your business trip. The related IRS regulation or publication is listed after each category.
You can deduct half of the cost of each meal on actual working days. This is true whether you have met someone else with meals, picked up the card, or just ate it. (1.162-2 (a))
This is usually a major part of travel costs. These costs include rental cars, airfare, airport transfers, taxis and trains. (463 IRS Publication) Laundry
Dry or laundry costs associated with clothes that have been worn on the travel business are deductible as legal travel costs. (Internal Revenue Ruling 63-145 and 1963-2 C. B. 86.)
All accommodation costs, such as hotel bill, are legally deductible travel expenses. (IRS Issue 463) Tips, Congratulations, Telephone Calls
If you had to provide a cabbie, a porter or a maid, these costs should be included as part of your travel expenses. These should be associated with business days. Business-related phone calls, whether local or long-distance, can also be deducted. (1.162-2 (a) and IRS publication 463)
Does this sound pretty simple? As always, keep in mind that the devil is in the details, or in this case, in the documentation. This article outlines all the deductible legal travel costs, but can only actually be deducted if properly documented. So draw it until the document!
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