Small business tax help website

Business Travel Tax Deductions

You can take tax deductions on your business travel. Would you like to take a vacation and call it business travel and take tax deductions? Find out how to enjoy yourself on a vacation and use the IRS' allowed business travel tax deductions. The IRS treats expenses for business travel in the US differently from business travel out of the US. Let us first discuss how to take business travel tax deductions within the US.

Business travel tax deductions for US vacations

business travel

If your primary purpose of your trip is to conduct or transact a business, then the IRS says that you can deduct all of the costs of your:

  • transportation to and from the area,
  • lodging, and
  • 50% of meal expenses.

While on your business trip, you can of course vacation and enjoy yourself and still qualify for the business travel tax deductions. This IRS tax rule on business travel tax deductions applies to every stat of the US including the District of Columbia.

Business travel tax deductions allowed on business trips only

If the main purpose of your trip is personal rather than for business purposes, you cannot take any business travel tax deductions. So, what is considered business travel? The answer lies in how much time you spent transacting business vs enjoying yourself, sightseeing and having non-business related fun.

If you are on a business trip but decided to stay at the destination longer to vacation, you can only deduct the expenses related to the business stay and business trip, not the extra time you spent vacationing.