Tax Deduction for Home Business Travel

Last year, I attended BlogWorld. As a freelance writer and professional blogger, this could be considered a tax-deductible expense. The registration and hotel were paid for by a client, but I did have to pay for my own travel arrangements and meals. As a result, I enjoyed a tax deduction for my travel expenses and meal expenses (only 50% for meals, though). The Wandering Tax Pro offers this helpful insight on Bargaineering:

You can deduct expenses that are “ordinary” and “necessary” for your trade, business or profession. An “ordinary” expense is one that is common and accepted in your specific trade or profession and a “necessary” expense is one that is helpful and appropriate. This is true whether you are a W-2 employee working for someone else or are self-employed, either as a sole proprietor reporting income and expenses on Schedule C of Form 1040, a partner in a partnership which files Form 1065, or an employee of your own “one-man” corporation filing either Form 1120 or Form 1120S.

If you attend conferences and seminars, meet with clients or do some other business-related travel on behalf of your home business, it is tax deductible. However, you do have to be careful. You can only deduct expenses related to your business — no deductions for site-seeing. Additionally, you can’t deduct expenses for your family, if you bring them along. You should also make sure to document the trip, and keep good records. Make sure you talk to a tax professional, though, to ensure that you are on the up and up.

I had a great time at BlogWorld last year, and it cost me hardly anything. It’s all about proper planning — and making sure that some business happens while you are there.