These business travel tips will approach the topic of business travel expenses in general terms. You must always follow your local laws and regulations and seek professional advice as applicable.
Business travel expenses are cost that occurs while you are travelling on business. Sounds simple enough? but unfortunately it isn?t. When is the cost of a trip deductible as allowable business expenses? Can you deduct all the cost of getting there and while there? What if you take your family with you?
What Are Business Travel Expenses?
The first golden rule of business travel expenses is that they must be ordinary and necessary. This leaves some room for interpretations but in principal its typical travel expenses that you need to incur in order to operate your existing business or to satisfy your job duties.
Secondly your business travel expenses must be reasonable. This again leaves some room for interpretations as first class flights and limousines can be very reasonable for some but not for others.
The business travel tips remind you that the expenses must be for business purposes only. Like expenses incurred in order to gain new customers or meet current customers, or to seek new investors, etc.
Allowable business expenses must be incurred for an existing business only, i.e. you can?t deduct travel expenses related to acquiring or starting a new business. Those travel expenses should be treated as part of the capitalized startup cost.
When you travel on business internationally then all your travel expenses related to getting to and from your business destination are deductible. If you spend part of your time abroad on personal business then you must check if you are can deduct all your travel expenses or if you must allocate them proportionally between business and private expense.
When you travel on business domestically it makes difference if your travel includes an overnight stay away from your tax home or not. If it doesn?t include an overnight stay then it?s considered a local same day business excursion and you must make sure your trip qualifies as such, i.e. must be a reasonable distance from your tax home and for clear business purposes.
Source: http://www.searchaudit.com/?p=136
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