A client recently called to discuss business travel. She frequently attends conferences and training seminars around the country and was concerned that her high travel expense might be a red flag for an IRS audit. As long as the following criteria are met then much of the expenses related to business travel can be deducted:
- Overnight travel is required
- Employee is away from his tax home
- The travel is for ordinary and necessary business reasons
- The trip is temporary
In addition, the lodging must not be considered too extravagant. If these criteria apply to the travel, then expenses such as airfare and lodging can be deducted in full.
One thing to remember though, business meals are only 50% deductible even when traveling.
Please click on the following link to read a UHY article about this topic.
UHY LLP E-Newsletter June 2012
