6 Closely-Guarded Travel Expenses Secrets Explained in Explicit Detail

6 Closely-Guarded Travel Expenses Secrets Explained in Explicit Detail

Emergency medical and dental coverage: This coverage reimburses medical or dental costs for injuries and illnesses covered by the policy while traveling. Even though you’re probably eating alone, you can deduct your meals while you’re on the road traveling. The IRS assumes that you have to eat your meals somewhere, even if you’re on a business trip. In cases where a taxpayer is required to take extended business trips, determining the location of a taxpayer’s primary place of business becomes difficult, though for most taxpayers, the determination is simple because many taxpayers maintain a residence in the general vicinity of their primary place of business.

The IRS has ruled that a taxpayer’s tax “home” – meaning principal place of business – is not limited to a specific building or worksite, but instead encompasses the entire city or general area in which the business is located. For taxpayers who are required to travel often for business, such extended business travel raises the question as to where that taxpayer’s tax “home” is located. When is a taxpayer considered to be “away from home” for purposes of deducting business travel expenses?

The IRS requires that a taxpayer be away from the company’s principal place of business, rather than a residence, in order to deduct business travel expenses. What if the taxpayer is away for an extended period of time for business reasons? You must attach a statement signed by yourself that includes the number of days you spent on the trip, the number of hours you spent each day attending scheduled business activities and a program from the convention sponsor that described these meetings and scheduled activities.

Unfortunately, the expenses for a spouse or an associate attending the convention with you are not deductible unless it can be shown that they work for the business. If you can provide all this documentation and satisfy the other requirements, the maximum deduction that you can take is $2,000 per year to attend a convention on a cruise ship. Cruise ship must be registered in the U.S.. All of the cruise ship’s ports of call must be in the U.S.

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