Many taxpayers have the same question when it comes to travel, meal, and vehicle expenses. “These expenses are tax-deductible, right?” As is the answer to many tax-related questions, it depends. In order to deduct travel, meal, and vehicle expenses, they need to be business-related as well as “ordinary and necessary.” An “ordinary” expense is one that is common and accepted in your trade or business. A “necessary” expense is one that is helpful and appropriate for your business. An expense does not have to be required to be considered necessary.
If you have questions about travel expenses, read this article. Topics covered include the following:
- Tax Home vs. Family Home
- Automobile Expenses
- Meals and Lodging
- Personal Use of Company-Provided Vehicles