Business Travel Tax Rules

Business travel expenses are fully deductible, meals are 50% deductible.

If the trip is personal and business, the expenses are so allocated as non-deductible and deductible. Transportation costs are deductible only if the trip is primarily for business. In the case of foreign travel, the business portion must be 75% to deduct all of the transportation expense. In so determining, each day is considered a business or personal day based on the following:

Days on which business meetings are conducted are business days
Days which are solely for recreation are personal days
Weekend and holiday days that fall between business days are deemed business days
Travel days are deemed business days if the trip is primarily for business
Cost of lodging, meals and incidentals are deductible on business days.
Costs associated with travel of spouse or children are only deductible if they are employees and there is a bona fide business purpose for their travel.

Be sure to document all business travel expenses with a log showing activities and business purpose and related receipts. This is an area of IRS scrutiny.