Lodging Expenses
Definition of 'Lodging Expenses'Costs for an overnight stay, usually in a hotel, that may be taken as a federal income tax deduction if the Internal Revenue Service's criteria are met. Lodging expenses are usually a business expense that is incurred when someone must travel away from their tax home to do business. The IRS does not set a standard amount that can be deducted for lodging expenses, however several criteria must be met for the expense to be tax deductible. |
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Investopedia explains 'Lodging Expenses'The IRS also allows individuals to deduct lodging expenses from their income when the lodging expenses are incurred as a moving expense. The IRS says the expenses must be reasonable for the circumstances of the move. Any lodging expenses that are not on the shortest route from the taxpayer's old home to his new home, for example, because he decided to take a detour for sightseeing, would not be tax deductible because these are not really moving expenses. |
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