Knowing deductable and non-deductable expenses is very important for every business traveler. You should keep a handy checklist of which travel expenses are reimbursable to speed up your reimbursement process. We’ve provided quick information on deductable travel expenses across all categories.
Costs incurred for operating and maintaining your car/truck are deductable by the standard IRS mileage allowance. Also, you can deduct tolls and parking expenses based on the amount you have spent.
Mode of commutation
Costs incurred to take you from an airport to the hotel/business location are deductable.
Baggage & shipping
Costs for baggage delivery or shipping business-related materials are deductable and can be included as line items in the expense report.
Lodging & meals
Expenses for lodging and meals are deductable. You can report expenses on the basis of per diem rates as defined by the IRS.
Reimbursements for special type of travel
In the case of conventions/trade shows, you have to show that conventions are related to your business. If you are a delegate, the convention should relate to your business.
There are certain limitations for claiming reimbursements when you travel on cruise ships on business purpose. You should clearly document that the cruise activities were related to business.
Storing all receipts related to travel is the most important task you have to do while on a business trip. You have to show receipts that contain expense details, and amount spent for business purposes. You should be as specific as possible while reporting expenses as every detail will be recorded for future purpose.
An expense report software solution will help you with all of the above, and ensure that your expenses are being monitored and controlled in an effective manner.