Can my Business deduct Travel? – Singletrack Accounting

Travel as a business deduction?

This answer is "its complicated!"

NOTE If your spouse or children go with you on a business trip, you generally cannot deduct their Travel expenses.

The IRS heavily scrutinizes this deduction, so if you are taking Travel Expenses as business deductions we urge you to read https://www.irs.gov/publications/p463#en_US_2021_publink100033810.
Below are some important excerpts

Travel inside the U.S.
The IRS categorizes Travel in 3 ways: Travel Primarily for Business, Travel Primarily for Personal Reasons, Part of Trip Outside U.S.

Travel Primarily for Business
You can deduct all of your Travel expenses if your trip was entirely business related. If your trip was primarily for business and, while at your business destination, you extended your stay for a vacation, made a personal side trip, or had other personal activities, you can deduct only your business-related Travel expenses. These expenses include the travel costs of getting to and from your business destination and any business-related expenses at your business destination.

Travel Primarily for Personal Reasons
If your trip was primarily for personal reasons, such as a vacation, the entire cost of the trip is a nondeductible personal expense. However, you can deduct any expenses you have while at your destination that are directly related to your business.

Part of Trip Outside U.S.
If part of your trip is outside the United States, use the rules described under Travel outside the U.S. for that part of the trip. For the part of your trip that is inside the United States, use the rules for travel in the United States.

Travel outside the U.S.

If you Travel outside the United States and you spend the entire time on business activities, you can deduct all of your Travel expenses. You can deduct all your Travel expenses of getting to and from your business destination.

If you Travel outside the United States primarily for business but spend some of your time on other activities, you generally can’t deduct all of your Travel expenses. You can only deduct the business portion of your cost of getting to and from your destination. You must allocate the costs between your business and other activities to determine your deductible amount. See IRS Travel allocation rules (this is very complicated).

If you Travel outside the United States primarily for vacation or for investment purposes, the entire cost of the trip is a nondeductible personal expense. However, if you spend some time attending brief professional seminars or a continuing education program, you can deduct your registration fees and other expenses you have that are directly related to your business.