Tax Expert: Road Warriors, Business Travelers Bone Up on Expenses
Finances, The Road WarriorJune 1st, 2010 No Comments »
June Walker, a tax advisor to the independent / soloist / self-employed and home office business community since 1979, has guided indies through various tax issues for years.
Today, she offers some guidance on handling business and travel expenses. To June, the questions seem the same: Travel expenses, transportation expenses, vehicle expenses – aren’t they all more or less the same thing?
Well, maybe to you they are, June says. But not to the IRS. There are subtle and there are grand differences. Understanding standard business travel and the expenses related to a typical business trip is the place to start.
Over the river and through the woods to Grandmother’s house goes Pat Personal Trainer. Gram just bought a color laser printer and it’s the cheapest way for Pat to print his new brochures. He leaves Friday afternoon. The bus gets him there in time for dinner. He works at the computer all the next day until the wee hours. (He’s sure these new brochures will get him lots of customers.) Very early the next morning he kisses Grandma good-bye and heads back home on the bus.
Pat was away from his home, for business, overnight. It was BUSINESS TRAVEL. Therefore he may deduct travel expenses.
The IRS says this about BUSINESS TRAVEL . . .