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When you hear the phrase “travel expenses” your brain may automatically assume extravagant international business trips…
But the travel deductions available to you can apply to trips on a much smaller scale - and that’s great news!
As you grow, you’ll inevitably have to (and likely want to!) travel more. An up side to this is the deductions you can take on your taxes.
And even though most of us aren’t doing much traveling right now (thanks, pandemic!) don’t sleep on these tips. They apply to road trips, quick day trips - not just ones that include fancy luggage and long-term stays!
Here’s what you need to know:
Keep notes on the purpose of the trip, the number of miles driven (if you drove), any expenses related to gas, lodging, meals, etc. A.K.A. keep your receipts!!
Certain expenses will qualify if the business keeps you away from home for longer than a day, and if sleep is necessary to perform your work. If you check those two boxes, here’s what you can deduct:
Air, train, rideshare fares
Hotel or AirBnB expenses
50% of cost of your meals
Entertainment related to business - Ex: hosting clients for meals
Even if you’re not traveling much right now, these are good things to keep in mind for the future! As your tax coach, you can guarantee I will always be on the lookout for the financial future of your business 🙌🏼
And save you from giving the IRS more 💸 than you should.
We’re #savvybusinesswomen in it together, after all.
Need help figuring out how and what expenses to deduct from travel? This is what I live for!