Traveling is expensive, and as a small business owner, you’re probably doing quite a bit of it. You have plane tickets to buy, hotels to book, cars to rent – and you have to eat. The costs add up quickly. Being able to deduct your travel expenses can really help you out.
The next time you’re traveling for business, keep these tips in mind.
Make Sure the Trip is Primarily for Business
If you’re traveling within the U.S., and the purpose of the trip is primarily for business, then you can deduct 100% of your airfare. That means you can bring your family (although, their costs aren’t deductible) and spend some time sightseeing, but still deduct your airfare and other business-related expenses.
There’s no official rule defining “primarily for business”, but the general rule of thumb is that your business days should out number your personal days.
Remember, You Can Only Deduct Half of Your Meal Costs
When you’re traveling, you have to eat. So, make sure you deduct half the cost of your meals, and any meals you treat a customer or vendor to.
Look for Conventions
Is there a convention that would be good for your business that you’ve been dying to go to? Go ahead and register! If you can show that your attendance at the convention benefits your business, you can deduct the travel expenses.
How do you show that your attendance benefits your business? Simply by comparing the convention’s agenda with your own job duties and responsibilities.
Does the Convention Have to Be in the United States?