Business-Vacation Trips Inside the U.S.

Deducting expenses while at a resort or some other vacation spot within the 50 states and the District of Columbia, even though you may enjoy some nonbusiness activities, is allowed, providing:

  • The primary reason for the trip is to transact business.
    • The most important element for determining your primary purpose is the amount of time spent on business.

Even if you spend time vacationing, as long as the primary purpose of your trip is business (most of your time is spent on business) you may deduct:

  • All your transportation costs to and from the area (100% deductible).
  • Lodging (100% deductible).
  • Meal expenses (50% deductible).

Extending Your Stay

If you extend your stay for non-business purposes, say to visit friends, travel expenses are only deductible to and from the business location.

Primary purpose personal:

If the primary purpose of your trip is for personal reasons you may not deduct any travel costs to and from the area.

Business-related Expenses Still Deductible

Even if the primary purpose of your trip is for personal reasons, you may still deduct business-related expenses.

Since the amount of time is important for determining the primary purpose of your trip you should keep a record of time spent (e.g., a log or diary) on business activities. This will provide evidence, in case you're audited, that your trip was planned primarily for business reasons.

File your personal and small business taxes (Schedule C)