IRS Rules for Deducting Transportation Costs for Trips in the U.S.

Okay, more IRS requirements for deducting transportation costs. Knowing these rules can be an important way to save valuable tax dollars in your small business venture. Don’t just dismiss these deduction options, they can save you lots of money all while allowing you to combine business with pleasure travel.
So let’s say you want to go on a little trip to San Francisco, and while you’re there you want to meet with prospective clients in order to promote your business. You love San Francisco, especially the great food. While there, you will talk to distributors and meet with potential clients you have set appointments with in writing before you take the trip. You will leave on Thursday and conduct some meetings on Friday and Monday. Based on this information, how much of your transportation costs to San Francisco are tax deductible?
Because you spend more than 50 percent of your trip days on business (don’t forget that travel days are counted as business days), you can deduct 100 percent of your transportation costs to and from San Francisco.
The tax-saving tip to remember for U.S. travel is:
Spend more than 50 percent of your days on business and you can write off 100 percent of your transportation costs.
It is very important when deducting transportation costs to know how many days of the trip are considered business days since the number of business days will dictate how much of your transportation costs can be written off. In an upcoming postet’s discuss in further detail the rules that determine what can be considered a business day.