Lodging Expenses

AAA

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.

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.

RELATED TERMS
  1. Cash Wages

    Cash wages include any kind of compensation that comes in the ...
  2. Fringe Benefits

    A collection of various benefits provided by an employer, which ...
  3. Unearned Income

    Any income that comes from investments and other sources unrelated ...
  4. Earned Income

    Income derived from active participation in a trade or business, ...
  5. Taxable Income

    The amount of income that is used to calculate an individual's ...
  6. Outside Sales

    The sale of products or services by sales personnel who go out ...
RELATED FAQS
  1. What emerging markets are best suited for investing in the aerospace sector?

    The two best emerging markets for investing in the aerospace sector are China and India. Both countries have a rapidly expanding ... Read Full Answer >>
Related Articles
  1. Entrepreneurship

    Tax Credit For Plan Expenses Incurred By Small Businesses

    Determine whether your business is eligible to claim a tax credit for establishing a retirement plan.
  2. Taxes

    Deducting Your Donations

    Generosity may be its own reward, but some charitable giving also provides personal tax benefits.
  3. Retirement

    Cut Your Tax Bill

    Paying your bills early or giving an extra donation now can help you come tax time.
  4. Entrepreneurship

    How Americans Can Apply For European MBA Programs

    Studying for an MBA in Europe is a great idea for Americans looking for a career boost.
  5. Entrepreneurship

    10 Tax Benefits For The Self-Employed

    Running your own business has both personal and financial perks.
  6. Investing

    What's a Multinational Corporation?

    A multinational corporation is just that – a corporation that operates in multiple nations, with a home office that coordinates global management. Being a multinational corporation is a complicated ...
  7. Investing

    What is Globalization?

    As a business term, globalization refers to the tendency of international trade, investments, information technology and outsourced manufacturing to weave the economies of diverse countries together.
  8. Savings

    7 Ways To Save Money On Business Travel

    Business travel is soaring, especially in America. But though business travel is great for the economy, it's not so kind to the traveler's bank account.
  9. Insurance

    Credit Cards With Travel Insurance

    Some credit cards offer travel coverage, which may include trip cancellations, lost baggage and rental-car damages. Just don't pay for more than you'd use.
  10. Insurance

    Flight Insurance Can Take The Worry Out Of Flying

    If paying for a missed flight or lost baggage is prohibitive, obtaining some flight insurance might just be a good idea.

You May Also Like

Hot Definitions
  1. Mixed Economic System

    An economic system that features characteristics of both capitalism and socialism.
  2. Net Worth

    The amount by which assets exceed liabilities. Net worth is a concept applicable to individuals and businesses as a key measure ...
  3. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  4. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  5. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  6. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
Trading Center