Answers · Deductions, assets & depreciation
Can a Business Deduct Travel?
Business travel can be deductible when the taxpayer is away from the tax home primarily for business and expenses are substantiated.
How it works
The rule, and what it turns on.
Commuting and personal travel are not made deductible by combining them with minor business activity.
Example
Houston-to-Dallas overnight trip solely for a customer meeting can generally qualify; a personal vacation extension does not.
Common mistakes
What we see go wrong, and what we do instead.
- Deducting commuting.
- No business-purpose records.
A better approach
- Separate business and personal itinerary/costs.
Authority
Where this comes from, so you can check it.
IRC §§162(a)(2) and 274(d); IRS Publication 463.
Relevant case law
Commissioner v. Flowers, 326 U.S. 465 (1946) - travel expenses must have the required business connection;
ordinary commuting/personal choices are not converted into business travel.
Educational information, not individualized tax advice. Treatment depends on your facts, entity classification and tax year, and IRS instructions change. Confirm your own position with us before relying on it. Mint Associates does not provide legal services.
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