With tax time around the corner, it s important to stay informed. Peruse the tax laws that pertain to your situation gas mileage rates, auto depreciation limits, and meal per diems change often and talk with accounting and legal experts about how your business uses travel. Check out these basic tips regarding U.S. travel they apply pretty much across the board. Write down how much it costs, and save the receipt. Your log should also include the names of the people you entertained, the reason for your trip, and any travel advances you receive from your employer.
Most people know that.
But you may be surprised to learn that there are also criteria to be met before you can justify deducting the travel expenses of an employee or colleague. These two stipulations also apply to deductions for taking along a colleague, defined by the IRS as someone with whom you could reasonably expect to actively conduct business. That could be an adviser, a potential client, or employee. Pay for the ticket and deduct it as a business expense. It ll save in time and confusion, and more importantly, it will make it much easier to support your business deduction claims if the IRS asks you to do so.