Business Travel Deductions & Tips

Posted by | August 26, 2016 | Tax Tips | No Comments

Travel deductions for conferences - AmyNorthardCPA.comAs I get ready to head out to The Savvy Experience in Arizona, I thought it would be fun to chat about how to expense all the things that go along with attending a conference and business travel.

Travel Deductions

Pre-conference Shopping!

As I was in the Anthropologie dressing room looking at the price tags of all the pretty things I found, I was REALLY wishing the IRS allowed us to deduct clothing we plan to wear at conferences (that we attend or speak at). Unfortunately, they’re pretty straightforward in the IRS Publication 529 (search “clothing”) that any business clothing purchased that can also be worn outside of work functions are not deductible.

Flight and Luggage Fees

This is pretty straightforward – any expenses related to your flight, including luggage fees, can be expensed through your business. Driving? Check out this post on car and truck expenses.

Taxis, Ubers, Lyfts

Whichever one you choose, this travel cost between the airport and your hotel is deductible. If you’re sharing a ride with another attendee, Uber and Lyft allow you to split the fare so you each get a receipt for the expense!

Meals During Travel

If you’re traveling away from your “tax home” (city or area where your main place of business is located), you can deduct all meals eaten while away, not just meals where you talk business. If you don’t want to keep track of all the receipts while you’re gone, you have the option of using a per diem rate (a flat rate based on the city you’re in). You can use this link to find the per diem rate for the location of your travels. The Scottsdale, AZ meals and incidentals rate is $59/day.

Tips

Any tips you pay related to deductible meals, lodging, or travel can also be expensed. If they are paid in cash, keep a log that shows the date, amount of tip, and reason (ex: server tip at dinner).

Dry Cleaning and Laundry

If you’re gone for an extended period of time and need laundry done while traveling, these expenses can be deducted.

Record-keeping While Traveling

Keep receipts of all your expenses OR take pictures of the receipts and upload them to a Dropbox folder or your bookkeeping software. In the Quickbooks app, you can upload receipt images directly to expenses on your phone! Xero and Wave also have this capability. I like to keep paper copies as well, just in case, so I usually bring along a zippered pouch or wallet (like this one) to stash receipts in.

Amy Northard, CPA

The Accountant for Creatives
+ taxes + bookkeeping + consulting
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