Tax deductions help offset travel expenses for business travellers. Learn about some key deductions for business trips before you hit the road.
What to know about tax deductions for business travel
If you are traveling for business purposes away from your main workplace or home, you may be eligible for business travel deductions. However, your travel expenses must be reasonable and essential for business purposes, and not extravagant, or for personal purposes. If you are on a short-term work assignment of less than a year, your employer can deduct your travel expenses. When it comes to conventions held outside North America, there are specific regulations for their deductibility.
If someone has to spend the night away from their home to fulfill their work obligations because they are away for more than a regular workday, it is considered traveling away from home for tax purposes.
Deductible expenses include:
- Travel by plane, train, bus or car between home and a business destination
- Fares for taxis or other types of transportation between an airport or train station and a hotel, or from a hotel to a work location
- Shipping of baggage and sample or display material between regular and temporary work locations
- Using a personally owned car for business
- Lodging and meals
- Dry cleaning and laundry
- Business calls and communication
- Tips paid for services related to any of these expenses
- Other similar ordinary and necessary expenses related to the business travel
Make sure you keep records such as receipts that support your deductions. We are dedicated to ensuring you receive the maximum tax deductions while fully adhering to all regulations and rules.
If you have any questions, please don’t hesitate to contact us.