Travel Expenses

AAA

DEFINITION of 'Travel Expenses'

The costs associated with traveling for the purpose of conducting business-related activities. Travel expenses can generally be deducted by employees as non-reimbursed travel expenses that are incurred while traveling away from home specifically for business purposes, such as for a conference or meeting. While many travel expenses can be deducted, those that are lavish or extravagant in nature, or those that are for personal purposes, are excluded. The Internal Revenue Service (IRS) considers employees to be traveling away from home if their business obligations require them to be away from their "tax home" (the general area where the their main place of business is located) for a period longer than a typical work day.

INVESTOPEDIA EXPLAINS 'Travel Expenses'

The Internal Revenue Service (IRS) considers employees to be traveling away from home if their business obligations require them to be away from their "tax home" (the general area where their main place of business is located) for a period longer than a typical work day. Well-organized records, including receipts, canceled checks and other documents that support a deduction can help individuals prepare tax returns and answer questions from the IRS.

RELATED TERMS
  1. Form 2106-EZ: Unreimbursed Employee ...

    A tax form distributed by the Internal Revenue Service (IRS) ...
  2. Fixed and Variable Rate Allowance ...

    A way of reimbursing employees who use their own or leased vehicles ...
  3. Overnight Sleep Test

    A criterion that determines whether meals eaten alone while working ...
  4. Convenience Of Employer Test

    The test that is applied to determine whether meals, lodging, ...
  5. Convention Expenses

    Any travel expenses incurred while at a business convention. ...
  6. Away From Home

    The IRS criteria used to establish whether or not you are within ...
RELATED FAQS
  1. What risks does a business owner face under a business structure with unlimited liability?

    The risks that a business owner faces under a business structure with unlimited liability are literally unlimited, but they ... Read Full Answer >>
  2. How do I set up a Limited Liability Company (LLC)?

    The specific process and procedures for organizing a limited liability company (LLC) vary from state to state. However, the ... Read Full Answer >>
  3. If I retire in the Philippines, will I be able to work or start a small business?

    Foreign retirees entering the Philippines with plans to become permanent residents may start a business or work once they ... Read Full Answer >>
  4. What are some good resources to help entrepreneurs develop a business model?

    There are a number of resources available for entrepreneurs developing business models. Online resources provided by bloggers, ... Read Full Answer >>
  5. What's the difference between a financial plan and a financial forecast?

    Selecting the appropriate business structure for a new company can present challenges to an entrepreneur. Considerations ... Read Full Answer >>
  6. What are some examples of how corporations manage short-term investments?

    One of the easiest ways for a business owner to reduce liability is to incorporate as a legal entity to enjoy the protection ... Read Full Answer >>
Related Articles
  1. Insurance

    Travel Tips For Keeping You And Your Money Safe

    Take precautions to avoid being taken advantage of on your vacation.
  2. Insurance

    Top 9 Vacation Destinations For Wall Street Geeks

    Indulge your inner geek with one of these financial-themed holiday getaways.
  3. Budgeting

    Budget-Friendly Summer Fun

    Keep the kids out of your hair and wallet by saving on summer camps, sports leagues, day trips and more.
  4. Personal Finance

    Save On Planes, Trains And Automobiles

    Getting to, and around, your travel destination doesn't need to break the bank.
  5. Home & Auto

    The Advantages Of Vacation Insurance

    With a few simple policy additions you can protect your holiday plans from being ruined.
  6. Entrepreneurship

    Top 10 Home Business Tax Tips

    If you work for yourself, make sure you are getting the most for your tax dollars.
  7. Budgeting

    All-Inclusive Vacation Keeps Travelers On Budget

    Vacationers are faced with a major financial risk: spending too much money. Find out how to avoid it.
  8. Budgeting

    Globetrotting On A Budget

    Don't let a shoestring budget trip-up your vacation plans.
  9. Options & Futures

    Travel Smart By Planning How You'll Pay

    With a little pre-trip planning, you can avoid being stranded without adequate funds.
  10. Personal Finance

    Shoulder Season: Your Ticket To The Perfect Vacation

    Traveling during the sweet spot between high season and off season can save you money and stress.

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