It is almost summer, and many people will be thinking about traveling. If you plan it right, you might even be able to deduct a good part of your trip.
Travel Primarily For Business
The IRS says that travel primarily for business is fully deductible. If you take a mainly business trip, and while you are there, you extend your stay for a vacation or take a personal side trip, you can still deduct the business-related travel expenses. Private trips are not deductible, but you can remove any costs while at your destination that directly relates to your business.
How do you figure out if a trip is primarily business or pleasure? Generally, this is determined by the amount of time you spend on business vs. personal activities. If more time is spent on business activities, your trip is primarily for business purposes.
There is a multitude of expenses that qualify as travel expenses. Transportation, hotel/lodging costs, car expenses (gas, oil, repairs, etc.), taxis, tips, and telecommunication fees are all examples of deductible expenses. Meals and entertainment expenses, however, are subject to a 50% limitation.
Remember that if your spouse or children travel with you, only your portion of the travel expenses is deductible. Even if other family members occasionally assist you in business, unless their presence is necessary to conduct business, their travel will not be deductible.