It is important to remember that business travel is a tax deductible expense. It is relatively simple to keep track of, but there are a couple of rules you need to keep in mind.
First, the expense of your daily commute is not tax deductible. Miles logged to and from work either by car or public transit cannot be deducted. However, if you must travel to secondary locations or temporary locations and your employer does not reimburse you for the cost of that travel, then those expenses may be tax deductible.
Second, it’s important to realize what expenses are and are not tax deductible. Extravagant purchases or purchases of items for personal use cannot be deducted. Deductible expenses generally include such items as meals, lodging, dry cleaning, business calls on your cell phone, and any other item related to the business nature of your travel.
Third, be sure to maintain records of your expenses. Although the IRS permits standard meal allowances and entertainment expenses, it’s always a good idea to know exactly how much you have paid and how much you can deduct.
You can use Form 2106 to help you claim these tax deductions.
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