Business Travel Quick Tips
Is It truly Deductible or Just Personal?
Business travel is one of the most common and most misunderstood deductions for small business owners and self-employed professionals. When done right, it can put real money back into your business. But when claimed incorrectly, it can trigger IRS questions or audits. Let’s walk through what is deductible, what isn’t, and how to make sure your travel deductions stay IRS-safe.
Deductible or not?
Business travel is one of the most common and most misunderstood deductions for small business owners and self-employed professionals
1. Your Trip Must Be “Away From Home” and Primarily Business
To qualify as a business travel deduction, your trip needs to meet two core IRS criteria:
You’re traveling away from your tax home (not just commuting to your regular workplace).
The primary purpose of the trip is business, not personal.
If you sneak in personal days or activities, only the business-related portion of the trip may be deductible.
2. Transportation Costs Are Deductible
You can deduct the cost of getting to and from your business destination, including:
Airfare, train, bus, or ferry tickets
Rented cars or taxis/Uber/Lyft rides between airports, hotels, and business locations
Standard mileage or actual car-use costs when using your own vehicle
Parking fees and tolls while on business travel
Pro Tip
IRS mileage rates change annually, so be sure to use the current rate when calculating your deduction.
3. Lodging is Deductible
Your hotel stays or other accommodations are deductible as long as they’re reasonable and tied to business activities. This includes hotels, motels, and short-term rentals like Airbnb when you’re on the clock.
If part of your stay is personal (for example, a weekend at the end of a work trip), you must allocate costs between business and personal use. 4. What About Meals? (50% Rule)
Meal deductions during travel generally follow a 50% deductible rule:
You can deduct 50% of business meal costs while traveling, as long as the expense is ordinary and necessary and connected to business.
So if you’re dining with a client or grabbing a quick lunch during a conference, only half of that expense typically qualifies.
5. Other Deductible Trip Costs
There are several “incidental” — but still deductible — expenses while traveling, such as:
Baggage fees and shipping of business materials
Dry cleaning and laundry while on an extended trip
Business phone calls, Wi-Fi charges, and communication tools
Tips for services related to business travel
These might seem small, but over multiple trips, they add up.
What Isn’t Deductible
Not all travel expenses pass muster with the IRS. Some common non-deductible items include:
Commuting from home to your regular office or workplace
Personal vacation days bundled into business trips
Travel costs for spouses or companions without a bona fide business purpose
Even if you think you can justify it “for networking,” the IRS still insists on documentation showing the business purpose.
Documentation Is Everything
The IRS is clear: you must substantiate your travel deductions. That means keeping:
Receipts and invoices
Dates and locations
Business purpose of the trip
Names of attendees for meetings and events
Without documentation, even legitimate travel expenses may be disallowed.
Final Thoughts
Properly claimed business travel deductions can reduce taxable income significantly — but you must follow IRS rules carefully:
Travel must be primarily business
Expenses must be ordinary and necessary
Personal costs must be separated and excluded
Accurate records are essential
If you’re unsure about how to classify or claim an item, it’s often worth talking with a tax professional, especially if travel makes up a large part of your business strategy.
