Written by Marc R Barnes EA
September 25, 2009
When you travel for business, you can deduct many expenses, including the cost of plane fare, costs of operating your car, taxis, lodging, meals, shipping business materials, cleaning clothes, telephone calls, faxes, and tips.

To be deductable for tax purposes, expenses incurred for travel, meals, and entertainment must be ordinary and necessary expenses. Generally, you must also show that entertainment expenses, including meals, are directly related to the conduct of your business.

Reimbursements

A reimbursement allows for the payment for charges for travel, meals, and entertainment expenses incurred by your employees.

What about combining business and pleasure? It's okay, as long as business is the primary purpose of the trip. However, if you take your family along, you can deduct only your own expenses.

Because of differences between accounting methods and tax law, you may deduct 100% of the cost of meals on your business books. However, for tax purposes, only 50% of these costs are allowed by law as a tax deduction.